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

Sedare

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Dec 29, 2010
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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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Jun 18, 2015
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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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Nov 25, 2010
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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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May 28, 2011
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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.
 
May 19, 2020
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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.
 
Dec 6, 2019
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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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Oct 19, 2013
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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.
 

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