You know that feeling when you’re the most popular kid in school, and suddenly the principal starts giving you side-eye?
I do.
This may or may not shock you – but this Gorilla wasn’t always the mild-mannered, money-making simian you see before you. I was a young and mischievous ape now and then…
So, I know that feeling all to well.
Well, one of our favorite companies in the tech sector is going through something similar at the moment…
But with way more money involved and a lot less recess.
That’s right, folks…
One of tech’s shining stars is now facing a less-than-glamorous visitor knocking on its door – and no, it’s not the principal – it’s the Department of Justice.
Many people can tell you…
It’s not fun getting a visit from Uncle Sam in any shape or form as an individual or a business – but when you’re on of the hottest companies in one of the hottest industries selling one of the most sought-after products…
It’s most likely absolutely terrifying to upper management.
So, what’s going on?
Keep reading to find out which company is getting the wrong kind of attention from the US government.
Read on…
I bet you’re champing at the bit wondering which company is running afoul of the US Government…
And don’t worry – I’m about to tell you – I just like to build up a little anticipation.
Now, when you think of companies that should be under the scrutiny of the federal government – the world’s top chip maker isn’t one of them…
However, it seems that isn’t the case for Nvidia (NVDA).
Usually, Nvidia’s inbox is brimming with love letters from investors and oversized checks for their cutting-edge chips…
But this week, things took a turn when the US Department of Justice (DoJ) decided to send them a little something called a subpoena.
Fun, right?
So, you may be wondering what’s going on?
Well, the DoJ suspects that Nvidia may have been playing a little too rough with its competition.
Apparently, they’re looking into whether Nvidia has been violating antitrust laws – which is just legal speak for “are you being a bully in the market?”
Word on the street is Nvidia might be making it hard for other companies to switch suppliers…
You know, like punishing people for even glancing at another supplier and rewarding those who stay loyal with a few sweet perks.
Oh, and to add some icing to this crap-flavored cake…
They might also be digging into Nvidia’s potential acquisition of RunAI.
Naturally, Nvidia is playing the innocent card, shrugging and basically saying, “Can we help it if we just happen to make the best stuff around?”
Of course, what happens here is important – because the outcome could send ripples throughout the entire market.
Why?
Well, because Nvidia has become the golden child of the chip supply chain – with big tech names like Microsoft (MSFT) and Meta (META) tossing a hefty chunk (about 40%) of their hardware budgets at Nvidia’s products.
Not only that…
But Nvidia’s sales are doubling each quarter like it has found a cheat code.
And this year – its profit will likely beat out AMD’s total sales.
But before you start getting too jealous, investors aren’t exactly dancing in the streets right now.
Just the rumor of trouble had Nvidia’s stock taking a nearly 10% nosedive.
That’s because investors are a jittery bunch – and a whiff of economic downturn was all it took to send them into panic mode.
However, let’s not pretend Nvidia is the only tech giant getting some unwanted attention…
Google (GOOG) Meta, Apple (AAPL) – they’ve all been called to the principal’s office lately.
And with the US elections looming – the future is even cloudier.
Depending on who takes the White House – we might see either a little more leniency or an all-out crackdown on these tech titans and their borderline monopolistic behavior.
Oh, and let’s not forget the whole pile of social issues that could also shift depending on the new leadership…
It’s going to be a wild ride, folks – which is why having a trusted name in the investing world helping you navigate these soon to be troubled waters.
GorillaTrades was created because I understood that markets are more fickle than a bride on her wedding day…
And that goes DOUBLE during an election year.
The markets can get really screwy before and AFTER an election – which is why you may need some guidance to get through the next coming months.
That’s why I’m urging you to become a member of GorillaTrades today.
We’ve built a reputation as that trusted name in our industry – and for more than a quarter of a century we’ve helped our members get the chance to make a LOT of money.
We’d like you to be there when the next big ship comes in…
However, we understand that joining isn’t everybody’s idea of a good time – and we respect those that want to go it alone.
However, if you feel you’ve been getting saddled for with more losers than winners…
You might want to give GorillaTrades a chance.
Regardless of whether you become a member or not…
Keep you eye on what’s happening between the DoJ and Nvidia.
The outcome could hold all kinds of consequences for not only the rest of 2024…
But for YEARS to come.
Until next time…
“Monopoly is the condition of every successful business.” – Peter Thiel