Nvidia Stock Fell 2% in Premarket Trading as Nvidia to Pay $5.5 Million to Settle SEC Charges.
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.