NVIDIA shares tumbled 7% Thursday after a U.S. federal judge allowed an investor lawsuit accusing the chipmaker and CEO Jensen Huang of concealing more than $1 billion in crypto-mining–related GPU sales to move forward as a class action. The ruling revives long-standing allegations that NVIDIA masked the role of miners in its 2018 revenue surge by channeling orders through consumer GeForce cards instead of reporting them under dedicated crypto product lines.
The suit, first filed in 2018, says NVIDIA misled investors by crediting booming revenue to gaming demand while downplaying—or hiding—the contribution from cryptocurrency miners. Plaintiffs claim the company routed miner purchases into the consumer GPU channel, inflating the appearance of organic gaming growth and obscuring real exposure to crypto-market volatility.
Court filings include internal documents and witness testimony suggesting undisclosed crypto-related GPU sales between $1.1 billion and $1.35 billion—significantly higher than what NVIDIA publicly acknowledged. Two insiders cited in filings, labeled “FE 1” and “FE 2,” describe systems tracking miner purchases and say Huang participated in sales meetings where crypto-driven demand and its revenue impact were discussed. Plaintiffs argue these accounts, together with internal records, show NVIDIA knew the scale of miner demand but publicly downplayed its significance.
NVIDIA disputes the claims, maintaining that crypto mining was a small portion of its business and largely confined to dedicated Crypto SKUs sold through its OEM segment. The company has defended its disclosures for years; industry groups have intervened on its behalf. In August 2024 the Digital Chamber of Commerce filed an amicus brief urging the U.S. Supreme Court to reverse a Ninth Circuit decision that had partly revived the case.
Regulatory trouble has surfaced before: in 2022 the SEC fined NVIDIA $5.5 million and issued a cease-and-desist order over alleged disclosure lapses tied to crypto-mining’s impact on fiscal 2018 results. Plaintiffs say newly disclosed internal emails and testimony bolster their view that NVIDIA’s public statements materially mischaracterized what was driving 2018 revenue.
The alleged masking had tangible market consequences. When cryptocurrency prices collapsed in late 2018 and miner demand evaporated, NVIDIA sharply cut revenue guidance, citing excess inventory and weaker miner orders. The stock plunged across two trading days—a collapse that triggered the investor lawsuit now certified as a class action by Judge Haywood S. Gilliam Jr. The judge found NVIDIA had not shown its statements lacked impact on the company’s share price; filings also include an internal email from a senior vice president suggesting the company’s valuation had been propped up by its public reassurances.
For crypto stakeholders, the case spotlights the old era when miners bought up gaming GPUs during price spikes—strains that contributed to shortages and higher prices for gamers. For investors, it raises questions about corporate transparency and how channeling sales can mask exposure to volatile markets.
At the time of writing, NVDA was trading around $172, roughly 18% below its October all-time high of $212. The case’s move to class-action status could extend litigation timelines and add a new chapter to the intersection of crypto cycles, GPU demand, and corporate disclosure practices.
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