On August 3rd, market news reported that Nvidia's plan to acquire startup Run: AI may involve antitrust issues and is facing review by the US Department of Justice. It is reported that in April this year, Nvidia announced plans to acquire startup Run: AI, but did not disclose the transaction price. At that time, it was reported that the transaction price was $700 million.
In addition, it is reported that the US Department of Justice is also investigating Nvidia's business practices, mainly due to complaints from Nvidia's competitors that Nvidia may have abused its market dominance when selling artificial intelligence (AI) chips. The report points out that the US Department of Justice is investigating whether Nvidia forced cloud computing providers to purchase multiple Nvidia products. The investigation also involves whether Nvidia will increase the price of network equipment for customers who want to purchase AI chips from competitors such as AMD in the United States.
A spokesperson for Nvidia responded to the media by saying, "Our competition is based on decades of investment and innovation, strict compliance with all laws, and making Nvidia products publicly available for all cloud services and local clusters of every enterprise, ensuring that customers can choose the best solution for them
Affected by the news, as of the close of the US stock market on August 2nd local time, Nvidia fell 1.78%, with a total market value of $2.64 trillion. During the day, Nvidia's stock price fell more than 7% at one point. In June of this year, Nvidia's stock price hit a new high, surpassing Apple and Microsoft at one point to become the world's most valuable enterprise. However, since mid July, Nvidia's stock price has been continuously declining. Wind data shows that the stock price has fallen by 17% since July 15th.
Although Nvidia's stock price has performed averagely in recent times and there have been doubts in the market about its high price, some institutions still seem to be optimistic about the company's prospects in the stock market. Morgan Stanley pointed out in a recent research report that due to the strong sales of Nvidia's chip products, the bright prospects for future new products, and the negative impact of market exaggeration of industry competition that will fade over time, Nvidia's stock price correction provides a good entry point. At the same time, Morgan Stanley maintained an "increase" rating on Nvidia's stock, with a target price of $144.