After a period of "hot" development, Nvidia began to face legal challenges and the ability to maintain growth.

The US Department of Justice (DOJ) has subpoenaed Nvidia and several other companies after finding evidence that the chip designer violated antitrust laws, according to Bloomberg. The DOJ is concerned that Nvidia is pressuring other companies to switch suppliers and even punishing them if they do not buy its AI chips.

DOJ representatives declined to comment.

An Nvidia representative told CNBC that the company "wins in the market through value, demonstrated through benchmark results and what it delivers to customers who prioritize the solution that works best for them."

Nvidia has drawn regulatory scrutiny since becoming the world’s most valuable chip designer and the biggest beneficiary of the generative AI boom, according to Fortune. The company is estimated to hold more than 80% of the market for AI chips for data centers. Its sales have also doubled each quarter, eclipsing rivals like Intel.

Earlier this month, The Information reported that the DOJ had opened an investigation into allegations that Nvidia abused its dominant position in the AI ​​chip market. The agency will look into whether the company pressured data center service providers to buy A100, H100, and HPC GPUs in bulk. The DOJ is also investigating whether Nvidia charged more for its products or delayed delivery if customers also bought AI chips from competitors like AMD and Intel.

Meanwhile, in the stock market, Nvidia is no longer able to maintain its strong growth as before. According to CNBC, at the end of September 3, Nvidia's stock fell 9.5% in just one day, wiping out nearly $300 billion in capitalization. This is considered the worst day for the American chip company since March 2020.

Last week, Nvidia reported better-than-expected earnings, with revenue up 122% year-over-year, and its data center and AI chip business up 154% thanks to the AI ​​boom. But investors weren’t happy with the numbers, as the growth in the past three quarters has been above 200%.

“The train is slowing down,” Luke Rahbari, CEO of Equity Armor Investments, told CNBC. “They grew too fast. Nvidia has been beating analyst expectations for several quarters. Now the company is not able to sustain the explosive growth that it has created.”

Ben Barringer, a technology, media, and telecommunications analyst and CEO of Quilter Cheviot, said demand for AI chips and data centers remains strong, but Nvidia's rally may have run its course. "Nvidia is now in a 'good growth' mode, not a 'great growth' mode," Barringer said.

👉With the underlying trend of Nvidia technologies reaching their peak, the trend of slow growth and decline may lead to stagnation from technology coins, so investors should be cautious.

$NEAR $WLD $BTC