NVIDIA fined 55 million for hiding graphics card sales data
Hardware

NVIDIA fined $5.5 million for hiding graphics card sales data from miners

NVIDIA Corporation is paying a $5.5 million fine in exchange for dropping SEC charges for improperly reporting data on the impact of cryptocurrency mining on sales of its gaming chips disclosed.

    David Paul Morris / Bloomberg News

David Paul Morris / Bloomberg News

The chipmaker is accused of failing to inform the SEC about the “significant” role of cryptocurrency mining in its GPU revenue growth in fiscal 2018. NVIDIA kept investors in the dark about this fact for two quarters, depriving shareholders of the information they need to understand future financial performance, the SEC said.

According to the regulator, NVIDIA violated both the US Securities Act and the US Securities Trading Act when it failed to disclose that its success was due to “unstable business.” In fact, NVIDIA misrepresented the sales increase as increased demand from gamers. This could be misleading for investors who would believe that this is the result of the company’s usual gaming-focused strategy.

“NVIDIA’s failure to disclose information has deprived investors of critical information to evaluate the company’s business in a key market,” – said Kristina Littman, head of the SEC’s crypto-assets and cybersecurity division.

The end of the mining boom in early 2018 led to NVIDIA lowering its quarterly revenue forecast by $0.5 billion and filing a lawsuit from investors. By paying a $5.5 million fine, NVIDIA will settle the SEC fees without admitting or denying its claims. Now NVIDIA is separating the sale of gaming and mining accelerators. CMP series accelerators are made for cryptocurrency extraction, and mining power in gaming GPUs is artificially reduced.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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