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Despite another record quarter that beat earnings estimates, shares of Nvidia NVDA have suffered — and the latest sell-off reportedly cost its chief executive almost $10 billion.
The chipmaker’s shares closed down 9.5% on Tuesday, resulting in a market capitalization loss of $279 billion — the largest-ever single-day drop in market value for a U.S. company, according to Reuters. Meanwhile, Nvidia chief executive Jensen Huang lost an estimated $9.8 billion from the plunge, according to Bloomberg.
Nvidia’s shares continued falling in after-hours trading, after a report said the chipmaker had been subpoenaed by the U.S. Department of Justice over complaints that it is violating antitrust laws. The Justice Department also subpoenaed other companies for evidence after initially sending questionnaires about Nvidia’s business practices, Bloomberg reported, citing unnamed people familiar with the matter.
In June, the Justice Department and the Federal Trade Commission reached a deal to carry out antitrust investigations into Nvidia and fellow artificial intelligence industry leaders Microsoft and OpenAI. U.S. officials are reportedly concerned by complaints that include how Nvidia has made it difficult for customers to switch chip providers.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” Nvidia said in a statement shared with Quartz.
The chipmaker’s shares were up around 0.9% during mid-day trading on Wednesday. So far this year, the company’s stock has climbed around 126.3%.
Nvidia’s shares likely reflect unimpressed investors who want more from the king of AI chips. The chipmaker reported record second-quarter revenue of $30 billion for fiscal year 2025 — up 122% from a year ago. However, Nvidia set its third-quarter revenue guidance at $32.5 billion, plus or minus 2% — slightly above the average analysts were expecting, but below top-end estimates.