The US Supreme Court has permitted a shareholder lawsuit against Nvidia to move forward. This lawsuit focuses on claims of misrepresentation about the company’s revenue from cryptocurrency mining.
The lawsuit says that Nvidia’s CEO, Jensen Huang, minimized how much the company relied on crypto sales during its big revenue increase in 2017 and 2018, before the cryptocurrency market fell. Nvidia announced it missed its revenue targets after the market collapse, causing its stock price to fall by 28% in two days. Huang called this a “crypto hangover.”
The Supreme Court made its decision after a hearing in November, where Nvidia argued that the lawsuit did not have enough details to move forward. The Court did not agree and let the case go to a federal district court in Oakland, California. Shareholders’ lawyers praised this decision as an important victory for corporate responsibility.
Nvidia has bounced back strongly despite the crypto crash, with its stock rising almost 190% this year. This growth is driven by high demand for GPUs in mining, gaming, and artificial intelligence.
The company said its revenue went up by 95% in Q3, hitting $35.1 billion, and expects Q4 revenues to be $37.5 billion. Nvidia reached a significant milestone by exceeding a $3 trillion market value.
Nvidia is responding to market changes by broadening its focus. The company is planning to develop advanced humanoid robotics infrastructure, aiming to lead in innovation while dealing with ongoing legal challenges.
