News Upset Investors Accuse Nvidia of Masking $1 Billion in Mining GPU Revenue as Gaming

Sedare

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Their stocks don't seem to be suffering yet as a result. Wonder if as this gains traction that will happen. Nvidia has been on the uptick for years. Hell only 4-5 years ago they were $36/share.,
 

Co BIY

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Lawyers, Shakespeare said.something about them...

Suing one of the most successful companies in the world for a highly profitable period in it's recent history allegedly on behalf of investors. This is the kind of abusive (frivolous is too kind) civil case where a "loser pays" rule is needed. They are damaging the company to the detriment of current owners for parasitic gains that make the world poorer.
 
So how was nvidia (or amd for that matter) supposed to be able to distinguish how many of the GPUs were sold to miners and how many to gamers.

Wouldn't the investors be just as much required to know about mining as the companies that produce the GPUs?

If you know about mining you can subtract normal sales from current sales by yourself even as an investor.
 

gamergeek

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I remember back when this was going on seeing some GPUs specifically for mining, as in they had no video output. Don't know if NVIDIA was involved with those or if it was all third parties, but if they were and these are the ones that were incorrectly labeled as gaming sales I could kind of see the investors point.
 

Integr8d

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Fanboys will be up in arms and the author's last paragraph is a copout. The point, as stated much earlier, is that their stock tanked b/c of the drop in crypto. They knew who was buying their GPUs, for what reason and were marketing specifically toward that use. To try to hide that obvious bubble and cost shareholders money is worth some discovery.
 
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I checked Nvidia's Form 10Ks and 10Qs filed with the Securities Exchange Commission during the time period in question. Nividia reported specific revenue effects and discussed the increased revenue from sales related to cryptocurrency mining to the SEC in those public documents. Based on Nvidia's disclosure, and the numerous warnings in the press about the risk associated with cryptocurrency I believe any investor not aware of the related risk was asleep at the wheel. Certainly any securities analyst worth his/her salt would have seen this risk.
 

Chung Leong

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I remember back when this was going on seeing some GPUs specifically for mining, as in they had no video output.
Those were booked under PC OEM sales. At issue here are actual gaming cards. How many were bought for cryptocurrency mining? At some point an executive at Nvidia must have posed that question. And I imagine a tech guy producing an estimate based on software telemetry.

My prediction: Nvidia will settle the case prior to discovery.
 

TheOtherOne

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As usual the real winner will be lawyers. They never say no to any job specially when offered by clueless buffoons with some money to waste.
 

Poppypbr

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Lawyers, Shakespeare said.something about them...

Suing one of the most successful companies in the world for a highly profitable period in it's recent history allegedly on behalf of investors. This is the kind of abusive (frivolous is too kind) civil case where a "loser pays" rule is needed. They are damaging the company to the detriment of current owners for parasitic gains that make the world poorer.
Bingo! Nvidia has participated in aiding cryptocurrency. Cryptocurrency is a loose cannon on the deck of national and international economic planning and stability. Nothing good will come of an elaborate Ponzi scheme that promotes avarice, greed, scalping and fraud. In the process, Nvidia is largely responsible for the scalping of video cards generally.

They could put a check in their BIOS to discourage cryptocurrency use of video cards intended for the computer marketplace but they analyzed the situation and decided that they could make more money by embracing cryptocurrency mining as a valid use of their product. Nvidia knew it would result in product shortages and raise the prices generally by reducing the available supply against the best interests of their loyal customers. They should have a separate product line for cryptocurrency "mining", priced appropriately for its monetary incentives (just like Intel charges more for a commercially intended Xeon processor for servers).

Instead Nvidia threw their loyalist customers (who are now leaving in disgust and in droves) under the bus. Nvidia investors are correct to cry foul for Nvidia corporate behavior. When cryptocurrency tanks, or is made illegal because of its inherent danger to legitimate economic investments, Nvidia will have to turn to a wiser. less loyal customer base and Nvidia's production will flood the market with oversupply, driving prices downward.

While Nvidia is playing games, AMD is conducting business. The first objective: overtake and surpass Intel in the consumer market has been accomplished. If you were an Nvidia investor, you could see what is next in AMD's crystal ball.
 

Poppypbr

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So how was nvidia (or amd for that matter) supposed to be able to distinguish how many of the GPUs were sold to miners and how many to gamers.

Wouldn't the investors be just as much required to know about mining as the companies that produce the GPUs?

If you know about mining you can subtract normal sales from current sales by yourself even as an investor.
By putting a check in their BIOS that prevents a card intended for computer consumers to be used for cryptocurrency purposes. Establish a specific assembly line for cryptocurrency intended cards and raise their prices, not the prices of loyalist customers.
 

Poppypbr

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Sep 21, 2016
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I remember back when this was going on seeing some GPUs specifically for mining, as in they had no video output. Don't know if NVIDIA was involved with those or if it was all third parties, but if they were and these are the ones that were incorrectly labeled as gaming sales I could kind of see the investors point.
Nvidia is in bed with China. China is simultaneously a customer, producer, consumer and competitor. In the process of their "relationship" with the Chinese, they are revealing proprietary company technology. Greed has their guard down and the Chinese know how to exploit greed to meet their own objectives. They are sitting on top of the largest population demand in the world and they are not going to see it exploited by Americans. They will invite Nvidia in. One Ring to rule them all, One Ring to find them, One Ring to bring them all, and in the darkness bind them.
 

Poppypbr

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Sep 21, 2016
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Crypto is compute, they would have to completely cripple their GPUs and make them impossible to run compute which would make them a lot weaker in games.
No. BIOS check to determine use. Shut down card if not used for a video output that utilizes video drivers.
 

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