My 3 Hot Takes on What Could Happen if the DOJ Takes Action Against Nvidia
Last week, reports from Bloomberg, Reuters, and CNBC presented some conflicting details regarding a supposed U.S. Department of Justice (DOJ) subpoena issued to Nvidia (NASDAQ: NVDA) as part of an alleged antitrust investigation. Nvidia's public relations team denies that the company has been subpoenaed, but the mere idea of such action led to some selling activity for the semiconductor stock since the news was first reported on Sept. 4.
While clear information about what is going on is minimal right now, it might be useful for investors (or potential investors) to take a closer look at the situation and think about what could happen if the DOJ does announce a formal investigation of Nvidia and/or takes action against the company.
As a thought experiment, let's look at how a government investigation might affect Nvidia's business in the short and long terms, and at how investors might want to think about the company's prospects if such an investigation is going on. I've got three hot takes regarding this story and where it may lead.
Source Fool.com
