Nvidia shareholders sue over crypto revenue


The Supreme Court approves a shareholder action against Nvidia for misrepresenting crypto income before the 2018 market fall.

The US Supreme Court rejected Nvidia's appeal, enabling a shareholder lawsuit for cryptocurrency mining income deception. Nvidia was sued for deceiving investors by downplaying its crypto-related revenues amid its strong revenue increase in 2017 and 2018, before the cryptocurrency market meltdown.

Shareholders say Nvidia CEO Jensen Huang misled how much its record profits depended on GeForce GPUs being used for bitcoin mining instead of gaming. Nvidia missed sales projections after the 2018 crypto market crash, sending its shares down 28% in two days. Huang called this financial disaster a "crypto hangover."

After a November hearing, the Supreme Court decided whether to intervene. Nvidia claimed that the complaint lacked sufficient specifics to continue to evidence collecting, but the Court disagreed. A federal district court in Oakland, California, will hear the lawsuit. The shareholders' counsel called this a “major victory for corporate accountability.”

The crypto meltdown hit Nvidia hard, but the business recovered well. Nvidia's stock has risen roughly 190% this year due to GPU demand for mining, gaming, and AI. The company's newest GeForce 4000-series GPUs outpaced AMD in profitability and market share.

Nvidia's Q3 sales rose 95% to $35.1 billion, with its Data Center sector growing 111%. The business expects $37.5 billion in Q4 sales. Nvidia established a computer sector standard by topping $3 trillion in market value earlier this year.

Despite its dominance in gaming and cryptocurrencies, Nvidia is diversifying. To lessen its dependence on risky areas like crypto mining, the business revealed intentions to construct sophisticated humanoid robots infrastructure in July. These initiatives have made Nvidia an innovation leader despite legal issues.

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