Falling chipmakers pressure stocks of AI-related equipment companies

Nvidia’s (NVDA) stock fell 9.5% on Tuesday amid a report that the chipmaker had received a subpoena from the Department of Justice as part of its growing antitrust probe.

The declined dragged down other companies that are poised to benefit from the boom in artificial intelligence.

Powell Industries (NASDAQ:POWL), a maker of power-distribution equipment for electrical utilities that are seeing rising demand from energy-hungry AI, fell 8.9% on Wednesday.

Other companies in the electrical equipment industry also fell:

• ESS Tech (NYSE:GWH) down 8.5%
• STEM (NYSE:STEM) down 16.5%
• Heliogen (OTCQX:HLGN) down 18%
• Blink Charging (NASDAQ:BLNK) down 8.1%
• Vertiv Holdings (NYSE:VRT) down 9.4%