DOJ Hands Nvidia Investors "Oh S**t" News with Anti-Trust Subpoena

Despite yesterday’s massive “Oh sh*t” moment for Nvidia investors, the “degenerate traders” bluechip of choice has definitely been living it’s best life this year, riding the AI wave like Kelly Slater on a perfect swell. However, just when it looked like nothing could go wrong, (other than guidance numbers that were already stellar, but not juicy enough for unrealistic expectations), Uncle Sam decided to crash the party with a move that's about as welcome as a Canadian company buying the Statue of Liberty. 

(Source: Giphy) 

In short, the DOJ did its best impersonation of Miley Cyrus on a wrecking ball as they dropped a spontaneous subpoena on Nvidia’s doorstep yesterday, for… wait for it… being an absolute UNIT that cashes checks and breaks its competitors' necks. 

(Source: Bloomberg) 

Interesting, more details please…

Here’s the deal, the DOJ isn’t exactly knocking on Nvidia’s door for a friendly chat. They’ve officially escalated their investigation into whether Nvidia’s been playing nice in the AI sandbox or if they’ve been hoarding all the toys. And by "toys," I mean market share and consumer choice. This has regulators raising their eyebrows, wondering if Nvidia’s been up to some shady business—like keeping customers so tightly wrapped around their AI processors that it’s starting to feel like a bad episode of "Black Mirror."

(Source: Giphy) 

The reason? Well because Nvidia, for its part, has been living large, doubling its revenue like a rapper making it rain at a strip club —all thanks to the AI boom that’s had everyone from Wall Street to your grandma scrambling to invest in tech stocks. How much rain? A nothin’ but a whopping $30.04 billion last quarter that markets an insane +122.4% revenue increase year-over-year.

But, but, but, as the saying goes, with great power comes great responsibility—or, in this case, great big targets on your back. 

(Source: Giphy) 

And now, with Nvidia’s recent $700 million acquisition of RunAI, regulators are sweating bullets, as if Nvidia’s about to lock down the market so tight, it’ll make Fort Knox look like an open house. Because, you know, God forbid we have another Rockefeller on our hands. 

(Source: CDO Mag) 

Of course, Nvidia, who knows they are the King of the Hill, are claiming they’re just "winning on merit," and that customers are free to choose whatever they want. Sure, nothing says "freedom" like being locked into multiple contracts with a single supplier, right? Well according to Microsoft that is.

(Source: Toms Hardware) 

But hey, let’s not split hairs when there’s a potential courtroom drama in the making. Nvidia’s innocence claims might sound good on paper, but in the real world, the DOJ isn’t buying it just yet. Which is why, the fallout happened to be none other than a -10% nosedive in Nvidia's stock that would make my seasoned skydiving cousin wince in fear. (Because I know for a fact, he’s a member of Wall Street Bets).

(Source: IBD) 

For more context, while the DOJs subpoena became the main culprit of a -10% decline in Nvidia's stock, it also wiped out a casual $279 billion in market cap (likely pissing off Jensen Huang as he was in the process of selling more of his shares). So clearly, “ouch” doesn’t even begin to cover the damage that was done yesterday. But still, let’s remember that even though the company is down an additional -1.57% on the day, Nvidia is still flying high with a juicy +120.80% YTD gain. 

(Source: Euro News) 

Of course, only time will tell if those impressive YTD numbers hold for the tech giant, especially as the DOJ keeps digging on the allegations of “monopolization”. But still, the ripples from this investigation could shake up the entire tech industry as a whole. How much of a shakeup, you  ask?

Try a seismic shift in how tech giants operate in this shiny new AI-driven world. Meaning, with AI becoming more crucial to everything from economic strategies to national security, you can bet your sweet bippy the regulatory landscape is about to get a lot more crowded. (Whistle blower royalties, anyone?) 

(Source: SEC.gov) 

So in the end, what’s the takeaway for investors? Well simply, put you may want to hold off of your YOLO call options for now. Why? Because we aren’t sure how long it will take for the DOJ to come out with another disruptive mic drop on Nvidia - and I know for a fact you aren’t going to want to be holding the bag when it breaks headlines.

(Source: Giphy) 

Of course, over the long term, Nvidia is definitely toppling the whole tech sector with it’s influence and big swinging GPU dominance. But still, there’s a reason that the stock's volatility could be the main hangup that keeps Nvidia from being listed in the Dow. So do what you will with that information. 

But regardless, let this be a lesson to all of us: When you’re winning, there will always be haters “b*ching” that you’re cheating in some way shape or form. And right now… the target is on Nvidia. 

(Source: Giphy) 

With that said though, let’s be real here shall we? 

While most traders and investors were eyeing Nvidia’s price action today like it’s the hot mom at soccer practice, Stocks.News premium members were absolutely EATING as today's alert catapulted from $1.30 at the time of publishing, to a peak of $2.76 in less than three hours! For you non-math folks, that’s an incredible +111.30% move that free Stocks.News readers missed out on (marking our fifth TRIPLE digit alert in a row). Cash me outside how bout dat?

Meaning, why worry if Nvidia is going to come out of the DOJ’s mess unscathed (or any other big tech giant for that matter), when our premium members are literally capitalizing on the most explosive market opportunities every… single… week? Now only you can decipher that logic, but for those who smell what I’m steppin’ in, hurry and upgrade to Stocks.News premium before our next alert! It’ll be a banger I’m sure. 

In the meantime, stay safe and stay frosty, friends! Until next time… 

Stocks.News holds positions in Microsoft as mentioned in the article.