12-31-2018, 10:25 PM
https://www.tomshardware.com/news/nvidia...38304.html
Quote:The Schall Law Firm, which specializes in securities class-action lawsuits and shareholder rights litigation, joined other firms in filing class action lawsuits against Nvidia. The pending litigation claims Nvidia made false and misleading statements to its shareholders regarding how it could manage reduced demand from the cryptocurrency market.
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Much of the lawsuit hinges on Nvidia's messaging around its ability to predict and react to changes in the cryptocurrency market, but that's a difficult proposition given the dynamics of modern cryptocurrency mining. Miners often use graphics cards for multiple purposes, such as gaming for enthusiasts and cloud applications for commercial users, so gauging a customers' intent when they purchase a graphics card is nearly impossible.
The lawsuit against Nvidia for its messaging is one of several [1,2,3], which only adds to the company's woes. Since October 1, Nvidia's stock has lost 53% of its value due to the crypto crash and the US trade war with China (the Chinese market accounts for ~20% of Nvidia's sales). Several of the company's customers, like Apple, Google, Amazon, and Facebook, also announced they are developing their own AI chips, seemingly threatening Nvidia's stranglehold on the lucrative data center GPU market. Intel's new graphics cards and AMD's 7nm data center Radeon Instinct GPUs also loom on the horizon, so the company is beset by challenges on all sides.
AMD has also suffered at the hands of the stock market due to its oversupply of graphics cards, but its diversified portfolio of both CPUs and GPUs has helped insulate the company from extreme losses. Meanwhile, Nvidia is solely reliant upon graphics technology.