NVIDIA Faces Class-Action Lawsuit Over Alleged Crypto Mining Revenue Hiding

A federal judge's decision to certify a class-action lawsuit against NVIDIA has brought renewed scrutiny to the company's historical dependence on cryptocurrency mining.

NVIDIA, which has become a dominant force in AI chips, is facing allegations that it misclassified massive crypto-driven revenue under its Gaming segment, downplaying exposure to the volatile crypto market and misleading shareholders about the sustainability of its growth.

The plaintiffs, led by a Swedish investment firm, argue that NVIDIA executives knowingly understated the role of crypto miners in driving gaming segment revenue. Internal documents, former employee testimony, and independent analyses suggest that the company earned at least $1.1 billion to $1.35 billion more from crypto-related GPU sales than it publicly disclosed.

The lawsuit claims that the bulk of this flow went through consumer GeForce cards, especially in high-demand markets like China. When crypto prices crashed in late 2018, NVIDIA slashed revenue guidance, citing excess inventory and fading miner demand.