Nvidia. Antitrust? No.

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By Douglas A. McIntyre Published
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Stocks: (AMD)(INTC)(NVDA)

Nvidia, the graphics chip maker, has received a subpoena from Justice regarding potential antitrust activity in the graphics chip and processing cards.

AMD is part of the probe as well. They bought graphics chip company ATI Technologies, which would appear to be the target of the investigation.

Nvidia is trading very near its 52-week high, so it may not take much to get its shareholders nervous.

The action by Justice would seem to contradict the wall that Wall St. sees the graphic chips market. As Morningstar points out "intense competition and the lack of an economic moat make these shares appropriate only for investors with strong stomachs for volatility"

Given that companies like AMD and Intel are competing with NVDA, it would seem that anticompetitive practices would be hard to come by

But, this author is not a lawyer.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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