Nvidia Stock Fell 2% in Premarket Trading

Tiger Newspress2022-05-09

Nvidia Stock Fell 2% in Premarket Trading as Nvidia to Pay $5.5 Million to Settle SEC Charges.Nvidia will pay a $5.5 million fine to the Securities and Exchange Commission to settle charges that allege the company failed to disclose the impact of cryptocurrency mining on its gaming business.

According to the SEC, Nvidia failed to disclose that crypto mining was a significant element of its revenue growth from the sale of its gaming graphics processing units (GPUs) during consecutive quarters in 2018.

Nvidia agreed to a cease-and-desist order and to pay a $5.5 million penalty, but did not admit or deny the SEC’s filing.

Crypto mining started gaining traction in 2017, fueling demand for high-powered GPUs well into 2018, the SEC said. Nvidia’s gaming revenue increased by 52% year over year during the second quarter of 2018 and by 25% for the third quarter of that year. During the relevant period, some of the company’s sales personnel expressed their belief that rising demand for the company’s gaming products, especially in China, was driven by crypto mining, but Nvidia failed to disclose the information to investors, the SEC said.

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Comments

  • BennyTay
    2022-05-10
    BennyTay
    😎
  • MickeyLiew
    2022-05-09
    MickeyLiew
    Market sentiment is not good now, so stock price drop can be no reason even for good company. 
  • micphy
    2022-05-09
    micphy
    Ok
  • N00b
    2022-05-09
    N00b
    Ok
  • Remotecam
    2022-05-09
    Remotecam
    I hope everyone realize this non compliance was 4 years ago, for a business that $NVIDIA Corp(NVDA)$did not design their GPU cards for.  Its use for crypto mining was done by users, not NVIDIA.  Seems unfair to be fined for that, even though the value is small. 
  • frusty
    2022-05-09
    frusty
    Ok
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