The charges stem from Nvidia’s fiscal year 2018 financial reports.The SEC notes Nvidia saw an explosion in crypto mining-related sales in 2017, when the rewards of mining Ethereum grew dramatically.
Crypto mining was widely reported as a cause of GPU scarcity , and Nvidia launched a separate CMP line specifically for mining, attempting to prevent shortages for gamers.But employees apparently acknowledged that many gaming GPUs were still going to miners.
“The company’s sales personnel, in particular in China, reported what they believed to be significant increases in demand for Gaming GPUs as a result of crypto mining,” the order says.Video: Nvidia upgraded to buy (CNBC) Sempra CEO discusses company’s natural gas pipelines to Mexico Economy adds 428,000 jobs in April, unemployment remains low Final Trades: CPB, TSLA, DIS & APA Cramer’s week ahead: Own recession-proof names and have cash ready for when stocks ‘come roaring back’ Web3 companies ramp up efforts to attract top talent from Silicon Valley Wild ride on Wall Street: Where do we go from here? What to watch next week Bitcoin slides below $36,000 after wild trading week Post-Market Wrap: May 6, 2022 CNBC TechCheck Evening Edition: May 6, 2022 CNBC Markets Now: May 6, 2022 The Week Ahead: Disney, Peloton and Beyond Meat report earnings next week Pete Najarian says Powell’s comments against 75 basis point hike may have caused market sell-off 5-star fund manager: Companies going up on revenues without concern for profits is a recipe for disaster The Week That Was: Wall Street roller coaster Fed rate hikes aren’t doing enough as supply side issues continue, says Quadratic Capital’s Davis Given the boom-and-bust nature of cryptocurrency, this meant Nvidia’s sales numbers didn’t necessarily indicate reliable future growth, making investing in it riskier.
“NVIDIA’s analysts and investors were interested in understanding the extent to which the company’s Gaming revenue was impacted by crypto mining and routinely asked senior management about the extent to which increases in gaming revenue during this time frame were driven by crypto mining,” the SEC alleges.Despite this, Nvidia didn’t mention mining-related sales as a factor in its gaming division’s success.
Meanwhile, it mentioned crypto as an important factor in other markets, which suggested to the SEC that it was being deliberately deceptive.And investors’ anxieties turned out to be well-founded.A crypto crash in late 2018 (along with a weakening Chinese market) led it to slash its quarterly earnings projections by $500 million and spurred a shareholder lawsuit .“NVIDIA’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market,” says SEC Crypto Assets and Cyber Unit head Kristina Littman.“All issuers, including those that pursue opportunities involving emerging technology, must ensure that their disclosures are timely, complete, and accurate.”.