Good morning.
Here’s a record Nvidia didn’t want to set: the biggest one-day loss in market cap, down $280 billion yesterday as its shares sank 9.5% to close at $108. While the chipmaker is coming off a year of giddy highs, one factor that set yesterday apart was the arrival of a subpoena from the U.S. Justice Department to investigate whether Nvidia violated antitrust laws. (Another was investor fears of an economic slowdown.) DOJ officials want to know if the AI chipmaker makes it hard for buyers to switch or shop around.
Antitrust officials are investigating other tech companies, too, so Nvidia is not alone. In fact, it’s hard to think of a moment in history when so many faced antitrust scrutiny—for monopolistic, hubristic, collusive or otherwise anti-competitive behavior. Federal Trade Commission (FTC) Chair Lina Khan and her peers at the Department of Justice have targeted alleged anti-competitive behavior in industries ranging from aviation, pharma and grocery to financial services, fast food and energy. And, of course, Big Tech.
