U.S. Supreme Court Lets Nvidia’s Crypto Lawsuit Move Forward

The U.S. Supreme Court has declined to intervene in a lawsuit against Nvidia, allowing a shareholder case regarding the company’s crypto-related earnings to move forward.

This legal battle stems from allegations that Nvidia misrepresented the role cryptocurrency mining played in driving the company’s revenue growth before the market’s downturn.

Shareholders claim that CEO Jensen Huang failed to disclose the significant reliance on crypto sales, particularly its GeForce GPUs, in Nvidia’s revenue surge between 2017 and 2018. The lawsuit argues that this omission misled investors and inflated the company’s market position ahead of the 2018 crypto crash, which saw Nvidia’s stock plummet by over 28%.

While Nvidia attempted to have the case dismissed, arguing it lacked sufficient evidence, the court’s decision is being hailed by shareholders as a win for corporate transparency. The case will now continue in federal district court in Oakland, California.

Despite the ongoing lawsuit, Nvidia has experienced significant financial success, with its stock soaring nearly 190% this year. This growth is largely driven by the company’s GPUs, which continue to dominate the crypto mining market, particularly in Bitcoin mining. Nvidia’s latest financial report highlights a 95% year-over-year revenue increase, with projections pointing to $37.5 billion in Q4.

In addition to its crypto ventures, Nvidia is diversifying into new sectors, including humanoid robotics, signaling a broader strategic shift beyond gaming and crypto mining.