Nvidia under investigation by DOJ over competitive practicesNvidia, a leader in the artificial intelligence processor market, is under investigation by the US Department of Justice (DOJ). The probe, reported by The Information, focuses on allegations that Nvidia may have engaged in anti-competitive practices to maintain its market dominance. Specific concerns include potential restrictions placed on competition through product bundling and aggressive strategies aimed at deterring customers from engaging with competitors.
The investigation extends to accusations that Nvidia pressured cloud service providers into purchasing combinations of products, such as A100 or H100 GPUs and Mellanox-branded networking equipment, which could limit customer choices. Furthermore, the DOJ is scrutinising whether Nvidia imposed higher prices on networking equipment for customers who opted for AI processors from competitors like AMD and Intel.
Technical analysis of NVIDIA Corp. (NASDAQ: NVDA)
Here follows a review of NVIDIA's stock performance for potential trading opportunities:
Timeframe : Daily (D1)
Current trend : the stock is currently in a downtrend, influenced by broader market negativity and the recent allegations
Resistance level : 118.80 USD
Support level : 102.40 USD
Short-term target : if the downtrend continues and the support at 102.40 USD is breached, a short-term target could be set at 88.00 USD
Medium-term target : with further negative momentum, the price could potentially decline to 75.50 USD
Potential uptrend scenario : if market sentiment improves and Nvidia manages to navigate the investigation without significant damage, an uptrend could see the stock rise towards 130.00 USD
Investors and traders should closely monitor the developments of this DOJ investigation, as it could significantly impact Nvidia's business practices and market positioning. The outcome could have long-term implications for Nvidia's operations and its relationship with customers and competitors in the highly competitive AI processor market.
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