Nvidia and CEO Jensen Huang Hit with Certified Class Action Lawsuit for Alleged Misstatements on $1B Crypto Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Source: stocktwits
Class Action Lawsuit Against Nvidia: A U.S. district court has certified a class action lawsuit against Nvidia and CEO Jensen Huang, alleging that the company understated its gaming revenue linked to cryptocurrency mining between 2017 and 2019, which misled investors about its financial health.
Impact on Nvidia's Stock: The lawsuit claims that Nvidia concealed over $1 billion in GPU sales related to cryptocurrency mining, contributing to a significant decline in its stock price, which dropped by about 28.5% following disclosures about its exposure to the crypto market.
Legal Proceedings and Developments: The case, initially filed in 2018 and dismissed in 2021, was revived on appeal and is now set to proceed to trial after a federal judge granted class certification, allowing investors to collectively pursue claims against Nvidia.
Investor Sentiment and Market Reaction: Following the lawsuit's developments, Nvidia's stock has experienced volatility, with retail sentiment declining amid broader market weaknesses, reflecting concerns over the company's performance and its exposure to the cryptocurrency market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 212.450
Low
200.00
Averages
264.97
High
352.00
Current: 212.450
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DGP Outperforms UGL in Five-Year Returns
- Return Comparison: DGP's five-year return of 242.93% significantly outpaces UGL's 200.29%, indicating DGP's structural advantage as an ETN, despite its direct credit risk tied to Deutsche Bank.
- Structural Differences: As an ETN issued by Deutsche Bank, DGP tracks an index calculation rather than holding physical futures, thus avoiding investor-level rolling costs, while UGL must roll futures contracts, which affects its performance due to contango or backwardation.
- Tax Implications: UGL holders receive a Schedule K-1 tax form, adding annual complexity, while DGP offers a 1099 form, simplifying tax handling and appealing to a broader investor base.
- Liquidity Considerations: UGL boasts larger asset size and tighter spreads, whereas DGP's smaller footprint can lead to wider bid-ask spreads during volatility, and the ETN carries closure or early redemption risks that UGL does not face.
See More
Nvidia Faces Intensifying Competition in Custom Chip Market
- Surging AI Demand: Broadcom's revenue soared 48% to $22.2 billion in Q2 2026, with AI-related revenue jumping 143% to $10.8 billion, indicating a robust demand for custom AI chips that poses a significant competitive threat to Nvidia.
- Customer Concentration Risk: Broadcom's AI revenue is heavily reliant on a small number of cloud customers, and while the CEO noted that demand for XPUs and networking is 'insatiable', this concentration could pose risks during market fluctuations.
- Marvell's Growth Potential: Marvell reported a 28% revenue increase to $2.4 billion in Q1 2027, with its data center segment contributing about 75% of total revenue, and it expects its custom silicon business to exceed $10 billion in annual revenue by fiscal 2029, showcasing strong growth potential in the AI sector.
- Market Valuation Pressure: Despite significant stock price increases, with Broadcom trading at a P/E ratio around 60 and Marvell near 100, both companies face risks from customer concentration and declining margins, which could impact future stock performance.
See More
Amkor Technology Signs 10-Year Agreement with TSMC
- Significant Revenue Growth: Amkor Technology reported a 27% year-over-year increase in first-quarter revenue, reaching a record $1.68 billion, with advanced products contributing $1.37 billion, highlighting strong performance in AI data center applications and boosting investor confidence.
- Strategic Partnership Agreement: The 10-year agreement with TSMC allows Amkor to provide advanced packaging and testing services in Arizona, expected to support key customers like Apple and Nvidia, further solidifying its critical role in the semiconductor supply chain.
- Capital Expenditure Plans: Amkor anticipates capital expenditures of $2.5 billion to $3.0 billion in 2026, with 65% to 70% allocated for facility expansion, including Phase 1 of the Arizona campus, laying the groundwork for future growth but also increasing execution risks.
- Customer Concentration Risk: Amkor's top ten customers accounted for 68% of net sales in the first quarter, which can be advantageous during strong demand but poses a significant risk if demand shifts or customers switch to other suppliers.
See More
Broadcom and Marvell AI Chip Revenues Surge
- Broadcom AI Revenue Surge: In its fiscal Q2 2026, Broadcom reported a record revenue of $22.2 billion, up 48%, with AI chip and networking revenue soaring 143% to $10.8 billion, highlighting the robust demand in the AI market and the company's competitive edge in this sector.
- Significant Order Growth: Broadcom has booked over $30 billion in AI orders this quarter and expects AI revenue to triple year-over-year in the current quarter, indicating a rapid expansion of its market share in the AI domain.
- Marvell's Strong Performance: Marvell's fiscal Q1 2027 revenue reached $2.4 billion, a 28% increase, with its data center segment contributing about 75% of total revenue, showcasing its strong performance in the cloud computing market.
- Future Growth Expectations: Marvell anticipates its custom silicon business will exceed $10 billion by fiscal 2029, with management expressing confidence in a 40% growth forecast, reflecting ongoing investments and market potential in AI-related technologies.
See More
Amkor Technology Expands Advanced Packaging Capacity
- Agreement Signed: Amkor Technology has signed a 10-year agreement with TSMC, which is expected to enhance its advanced packaging and testing services in Arizona, further solidifying its critical role in the semiconductor supply chain.
- Significant Revenue Growth: Amkor's first-quarter revenue rose 27% year-over-year to a record $1.68 billion, with advanced products contributing $1.37 billion, indicating strong demand in AI data center applications.
- Capital Expenditure Plans: The company anticipates capital expenditures of $2.5 billion to $3.0 billion in 2026, with 65% to 70% allocated for facility expansion, including Phase 1 of the Arizona campus, highlighting its commitment to future growth.
- Customer Concentration Risk: Amkor's top ten customers accounted for 68% of net sales in the first quarter, which can be advantageous during strong demand but poses risks if demand shifts or customers switch suppliers.
See More
Custom AI Chips Challenge Nvidia's Market Position
- Intensifying Market Competition: As cloud giants like Google begin designing their own processors to reduce reliance on Nvidia, the latter's dominance in the AI chip market is challenged, potentially impacting its future market share and revenue growth.
- Broadcom's Revenue Surge: Broadcom reported a record revenue of $22.2 billion in Q2 2026, up 48%, with AI-related revenue soaring 143%, indicating strong demand for custom AI chip solutions that could pose direct competition to Nvidia.
- Marvell Technology Growth: Marvell's revenue increased by 28% to $2.4 billion in Q1 2027, with its data center segment driving most of the growth, suggesting sustained demand for custom chips in the coming years.
- Investment Risk Advisory: Despite significant stock price increases for Broadcom and Marvell, their custom chip revenues heavily depend on a small number of cloud customers, creating customer concentration risks, while lower margins on AI sales compared to software could affect long-term profitability.
See More
DGP Outperforms UGL in Five-Year Returns
- Return Comparison: DGP's five-year return of 242.93% significantly outpaces UGL's 200.29%, indicating DGP's structural advantage as an ETN, despite its direct credit risk tied to Deutsche Bank.
- Structural Differences: As an ETN issued by Deutsche Bank, DGP tracks an index calculation rather than holding physical futures, thus avoiding investor-level rolling costs, while UGL must roll futures contracts, which affects its performance due to contango or backwardation.
- Tax Implications: UGL holders receive a Schedule K-1 tax form, adding annual complexity, while DGP offers a 1099 form, simplifying tax handling and appealing to a broader investor base.
- Liquidity Considerations: UGL boasts larger asset size and tighter spreads, whereas DGP's smaller footprint can lead to wider bid-ask spreads during volatility, and the ETN carries closure or early redemption risks that UGL does not face.
See More
Nvidia Faces Intensifying Competition in Custom Chip Market
- Surging AI Demand: Broadcom's revenue soared 48% to $22.2 billion in Q2 2026, with AI-related revenue jumping 143% to $10.8 billion, indicating a robust demand for custom AI chips that poses a significant competitive threat to Nvidia.
- Customer Concentration Risk: Broadcom's AI revenue is heavily reliant on a small number of cloud customers, and while the CEO noted that demand for XPUs and networking is 'insatiable', this concentration could pose risks during market fluctuations.
- Marvell's Growth Potential: Marvell reported a 28% revenue increase to $2.4 billion in Q1 2027, with its data center segment contributing about 75% of total revenue, and it expects its custom silicon business to exceed $10 billion in annual revenue by fiscal 2029, showcasing strong growth potential in the AI sector.
- Market Valuation Pressure: Despite significant stock price increases, with Broadcom trading at a P/E ratio around 60 and Marvell near 100, both companies face risks from customer concentration and declining margins, which could impact future stock performance.
See More
Amkor Technology Signs 10-Year Agreement with TSMC
- Significant Revenue Growth: Amkor Technology reported a 27% year-over-year increase in first-quarter revenue, reaching a record $1.68 billion, with advanced products contributing $1.37 billion, highlighting strong performance in AI data center applications and boosting investor confidence.
- Strategic Partnership Agreement: The 10-year agreement with TSMC allows Amkor to provide advanced packaging and testing services in Arizona, expected to support key customers like Apple and Nvidia, further solidifying its critical role in the semiconductor supply chain.
- Capital Expenditure Plans: Amkor anticipates capital expenditures of $2.5 billion to $3.0 billion in 2026, with 65% to 70% allocated for facility expansion, including Phase 1 of the Arizona campus, laying the groundwork for future growth but also increasing execution risks.
- Customer Concentration Risk: Amkor's top ten customers accounted for 68% of net sales in the first quarter, which can be advantageous during strong demand but poses a significant risk if demand shifts or customers switch to other suppliers.
See More
Broadcom and Marvell AI Chip Revenues Surge
- Broadcom AI Revenue Surge: In its fiscal Q2 2026, Broadcom reported a record revenue of $22.2 billion, up 48%, with AI chip and networking revenue soaring 143% to $10.8 billion, highlighting the robust demand in the AI market and the company's competitive edge in this sector.
- Significant Order Growth: Broadcom has booked over $30 billion in AI orders this quarter and expects AI revenue to triple year-over-year in the current quarter, indicating a rapid expansion of its market share in the AI domain.
- Marvell's Strong Performance: Marvell's fiscal Q1 2027 revenue reached $2.4 billion, a 28% increase, with its data center segment contributing about 75% of total revenue, showcasing its strong performance in the cloud computing market.
- Future Growth Expectations: Marvell anticipates its custom silicon business will exceed $10 billion by fiscal 2029, with management expressing confidence in a 40% growth forecast, reflecting ongoing investments and market potential in AI-related technologies.
See More
Amkor Technology Expands Advanced Packaging Capacity
- Agreement Signed: Amkor Technology has signed a 10-year agreement with TSMC, which is expected to enhance its advanced packaging and testing services in Arizona, further solidifying its critical role in the semiconductor supply chain.
- Significant Revenue Growth: Amkor's first-quarter revenue rose 27% year-over-year to a record $1.68 billion, with advanced products contributing $1.37 billion, indicating strong demand in AI data center applications.
- Capital Expenditure Plans: The company anticipates capital expenditures of $2.5 billion to $3.0 billion in 2026, with 65% to 70% allocated for facility expansion, including Phase 1 of the Arizona campus, highlighting its commitment to future growth.
- Customer Concentration Risk: Amkor's top ten customers accounted for 68% of net sales in the first quarter, which can be advantageous during strong demand but poses risks if demand shifts or customers switch suppliers.
See More
Custom AI Chips Challenge Nvidia's Market Position
- Intensifying Market Competition: As cloud giants like Google begin designing their own processors to reduce reliance on Nvidia, the latter's dominance in the AI chip market is challenged, potentially impacting its future market share and revenue growth.
- Broadcom's Revenue Surge: Broadcom reported a record revenue of $22.2 billion in Q2 2026, up 48%, with AI-related revenue soaring 143%, indicating strong demand for custom AI chip solutions that could pose direct competition to Nvidia.
- Marvell Technology Growth: Marvell's revenue increased by 28% to $2.4 billion in Q1 2027, with its data center segment driving most of the growth, suggesting sustained demand for custom chips in the coming years.
- Investment Risk Advisory: Despite significant stock price increases for Broadcom and Marvell, their custom chip revenues heavily depend on a small number of cloud customers, creating customer concentration risks, while lower margins on AI sales compared to software could affect long-term profitability.
See More
