Supreme Court Hints at Limited Ruling in Nvidia Case
The U.S. Supreme Court suggested it may issue a narrow ruling in a shareholder lawsuit against Nvidia Corp, where investors claim the company misled them about its reliance on cryptocurrency mining revenue.
During Wednesday’s session, justices questioned whether the case warranted Supreme Court review, with Chief Justice John Roberts noting both parties presented oversimplified arguments.
Shareholders allege that Nvidia CEO Jensen Huang misrepresented revenue sources between 2017 and 2018.
While Nvidia’s GeForce GPUs were promoted as gaming products, significant sales reportedly came from crypto mining, exposing the company to volatility.
A sharp revenue decline in late 2018 caused Nvidia shares to plummet 28% over two days.
Nvidia contends that the claims lack specificity for the case to proceed to the discovery phase.
Justice Amy Coney Barrett suggested the Supreme Court could return the case to the appeals court, which previously ruled in favor of the shareholders.
Nvidia’s stock has surged 200% this year, supported by rising crypto mining demand.
The spike follows Bitcoin’s halving, which reduced mining rewards and drove higher demand for Nvidia’s GPUs.
Despite this growth, Nvidia faces regulatory challenges, including a Department of Justice (DOJ) antitrust probe launched in September.
The DOJ is investigating whether Nvidia's market practices stifle competition, particularly in crypto and AI sectors.
Nvidia continues to expand beyond crypto, making strides in humanoid robotics to enhance human-machine interactions through tools that use human demonstration data for training.
Earlier this year, Nvidia’s market cap surpassed the total value of the Russell 2000 by $10 billion, contributing 43% of the S&P 500’s gains.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP price soars to 43-month highs, but is the rally over for now?
Top Economist Doubles Down on Bitcoin Criticism Despite $100K Milestone in Sight
Is Bitcoin the Answer to Global Money Supply Expansion?
What’s Next for Bitcoin? Tom Lee Reveals His Bold Prediction