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The Verge: Nvidia fined $5.5 million for hiding how many gaming GPUs were sold to crypto miners (in 2017 pre-COVID cypto boom)
- Thread starter Biosnake
- Start date
Well, that's interesting and all, but let's be real... It's not like these GPUs would have gone unsold if not for cryptominers, anyway.
They already sold those video cards so I don't think they will care. People will still want the newest card.
I get they'd have sold for a higher premium but they'd have sold the cards anyway. Just put your ASP up if you're that desperate.
I guess it's the fact that crypto is a different market to gaming and one that could potentially very rapidly shrink so it's an important distinction to disclose to investors
lmao
$5.5M? That's it?
Nvidia:
Crazy that this is for the 2017 surge. This took so long to adjudicate.
I do suppose they were way more open about how much business they were doing with the crypto space the second time around.
$5.5M? That's it?
Nvidia:
Crazy that this is for the 2017 surge. This took so long to adjudicate.
I do suppose they were way more open about how much business they were doing with the crypto space the second time around.
Five whole millions? I dont think Nvidia is surviving such a terrible blow. They'll probably die of laughter
If i've done some quick math correctly, that's 0.02% of their revenue last year (which was up 61% from last year, therefore it's also some shockingly small percentage of their *increase* in revenue).
Even the investors being defrauded have to be pissed at this, but I guess not even they have enough money to affect our system in that way.
Even the investors being defrauded have to be pissed at this, but I guess not even they have enough money to affect our system in that way.
I think that's why the fine is so low. there's no tracking in these gpus and discerning gamers from a miner is impossible as a lot of gamers mine on the side.
this always felt like investors complaining that Nvidia didn't charge more, rather than being misled
They'll release drivers to fuck up performance of older video cards in newer games to coincide with new card launches. They could also release some new feature like PhysX or RTX that will require new hardware and pay publishers to implement them in their PC releases and have all the marketing feature it to incentivize people.
The accusation has always been that they had agreements with miners and shipped directly to them.
"Now introducing the GTX 1,000,000 a GPU thousands of times more powerful than our last card available for $1 Million."
"Limited edition, only 6 will be made."
"Limited edition, only 6 will be made."
Nvidia were selling directly to miners in the height of the mining boom. Also, not appropriately informing investors of that fact can lead to lawsuits such as this one.
I would guess because video cards sold for gaming is considered a stable market while crypto is seen as a boom-bust market.
If someone wants to invest in nvidia because they are seeing stable market growth due to the amount of customers who use their cards for a long term (and repeatable business) case, that speaks to a healthy market. Crypto boom and then flooding the market with 2nd hard cards might be seen as riskier. IE- the theory that crypto "growth" doesn't equal actual overall customer growth for 4000/5000/6000 series cards because it's more unstable and/or the GPUs might not even be usable for mining at all at that point (it might go back to custom ASICs).
But i don't actually know anything. That's just how i interpret it.
eDIT - and now that i've read the article, it's exactly what my guess was.
If it wasn't a big deal, then Nvidia wouldn't have had to lie about it. Whether it's a good thing or a bad thing that cards were going to miners is immaterial, the point is that it should be up to investors to decide how they feel about it.
My guess is they were hiding it bc back in 2017 when this was going on Nvidia most likely was concerned about a crypto crash and mining drying up. The future of your company seems more promising if growth is coming from an established industry with long legs and steady growth like the gaming market then from highly a speculative new industry.
Biosnake I'm going to assume you didn't make the OP and thread title with a severe lack of details to be intentionally inflammatory and misleading. I updated the thread title with something you should have had there from the jump.
Thus the lawsuits and the SEC investigation.
It's because of this:
Investors were pumping money into Nvidia because they were thinking the Pascal gaming GPUs were lighting up the Steam charts. When Crypto hit a snag Nvidia dropped projections by 500 MILLION, which shouldn't have happened when they were reporting all of the sales as "gaming" related.
Thus the lawsuits and the SEC investigation.
Exactly.
Yea as someone that owns a few nvidia stocks this one has me steamed. Knew it was bullshit just from ya know reading the filings they gave years ago and seeing what consumers were saying about how crypto is sucking all the air out of the room. Gaming causing the growth my ass
I think it's about transparency. It's important so they can deliberate what this could mean(if anything) going foward.