Here’s the gist: A lot of investors took a big hit when Nvidia appeared to have a major surge in revenue from PC gaming, but it turns out those sales were mostly driven by the crypto craze back in 2017-2018.
Right now, Nvidia's in the middle of the AI hype, but have they actually learned anything? Are they being shady about the new challenges? Their investments in related AI companies are mostly losing money big time, so keep an eye out for more drama ahead.
They may have a legitimate case and be able to win this through the courts, if there are large differences between what the executive was saying versus any evidence that can be found which states the opposite. Investors could argue that they have been misled and potentially bought shares in the company on a false premise. The company might be forced to pay the difference and maybe a punitive fine on top. These sort of discrepancies happen occasionally and for most small scale investors there is negligible differences, but if you're putting millions into it - it can make up to a substantial amount and funds managers would be bound to pursue it, to protect their customers.
It seems that the fine is bearable and just a small amount of money to NVIDIA. They'll face all of these class action lawsuits and if they're found guilty.
Then that's it for them and have to pay the fine that's just a measly amount of money compared to how much they've earned.
Like history repeating itself, crypto bubble as they say and now AI bubble?