Nvidia is facing a stronger legal challenge after investors won class certification in a lawsuit accusing the company and CEO Jensen Huang of concealing more than $1 billion in GPU sales tied to cryptocurrency mining by reporting them as gaming revenue. The case now moves forward on the theory that Nvidia’s disclosures masked how dependent part of its growth was on a volatile source of demand.
According to the claims, Nvidia misclassified about $1.13 billion of crypto-driven GPU sales out of roughly $1.7 billion in total crypto-related sales between August 10, 2017 and November 15, 2018. Plaintiffs argue that the alleged reporting choice obscured the company’s real exposure to mining demand and helped sustain an inflated stock price.
Plaintiffs Say Crypto Demand Was Hidden Inside Gaming Revenue
The complaint argues that Nvidia routed a substantial share of mining-related demand through its gaming segment rather than identifying it clearly as crypto-linked revenue. Investors claim that more than 65% of crypto-related demand came from GeForce gaming GPUs, making the gaming business appear more durable than it actually was.
The suit goes further by alleging that crypto demand was not marginal, but a major force behind growth during the period in question. Plaintiffs contend that cryptocurrency activity may have driven about 83% of Nvidia’s GPU growth at the time, creating what they describe as a material gap between public guidance and the real source of revenue expansion.
The litigation also points to internal communications and later market reactions as supporting evidence. Judge Haywood S. Gilliam Jr. noted that an internal company email suggested awareness that earlier statements had helped keep Nvidia’s stock elevated, undercutting the argument that the alleged misstatements had no effect on price.
That alleged price impact is tied to two market moves that plaintiffs treat as corrective disclosures. Nvidia’s shares fell about 4.9% after the company’s August 16, 2018 earnings call, then dropped roughly 28.5% over two trading days following the November 15, 2018 revenue warning.
The Case Has Survived Years of Litigation
The lawsuit has already passed through several major legal stages. Filed in 2018, dismissed in 2021, revived on appeal and left standing after the U.S. Supreme Court declined to hear Nvidia’s appeal in December 2024, the case has now reached a more consequential phase with class certification in place.
The latest rulings also preserve the plaintiffs’ ability to quantify alleged investor harm. The court allowed an out-of-pocket damages model and an event-study analysis to stand, keeping intact the framework investors plan to use to link stock-price declines to the alleged misstatements.
The dispute carries broader implications beyond Nvidia itself. At its core, the case tests how companies should disclose revenue tied to fast-growing but unstable markets, especially when that demand can distort how investors evaluate the strength and sustainability of a core business segment.
A case conference is scheduled for April 21, 2026, and it will help set the next stage for discovery and timing. What emerges from that process could shape how markets interpret revenue linked to speculative demand and how companies handle disclosure when fast-moving themes temporarily lift financial results.
