Nvidia Accused of Concealing Crypto Sales Impact on Revenues
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Class Action Certification: A federal judge in California has certified a class action lawsuit against Nvidia and CEO Jensen Huang, alleging that they concealed the company's reliance on crypto sales for over $1 billion in GPU revenues between 2017 and 2018, leading to significant investor losses.
- Evidence of Price Impact: The judge noted that Nvidia failed to demonstrate that its statements regarding crypto revenue had no effect on its stock price, with internal emails revealing that executives believed the stock price remained high due to these statements, raising further concerns about the company's transparency.
- SEC Fine and Market Reaction: In 2022, Nvidia was fined $5.5 million by the SEC for failing to disclose the impact of crypto on its business, and in 2018, the company’s guidance cut and acknowledgment of excess inventory led to a 28.5% stock price drop over two trading sessions.
- Progress of Class Action: The certification of this class action allows investors to pursue the case as a group rather than individually, although it does not determine Nvidia's liability, the case is now moving closer to trial, with a case conference scheduled for April 21.
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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: 175.200
Low
200.00
Averages
264.97
High
352.00
Current: 175.200
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
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