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My goodness though, anyone with a brain knew the cards weren’t going to gamers. Was this not known to the average investor? I guess it doesn’t even matter bec

My goodness though, anyone with a brain knew the cards weren’t going to gamers. Was this not known to the average investor? I guess it doesn’t even matter because the $5.5 million fine is so laughably small for the rewards they reaped that I’m sure they are still laughing.

Xelbair 4y ago
>anyone with a brain knew the cards weren’t going to gamers. you answered this yourself.
kelnos 4y ago
Maybe, maybe not. But the point isn't who the products were going to, it's just that the explosive growth was driven by an unusual, unpredictable customer base, and Nvidia should have disclosed that future growth would be affected if the cryptocurrency mining landscape (something far more volatile than the "regular" market for GPUs) were to change. I agree that it seems dumb for the average investor not to know this, but this is just how this sort of thing works.
- lukeschlather 4y ago
  What's confusing to me is I swear I've read press releases from Nvidia that have clearly said "we're not adding new GPU production capacity because cryptocurrency miners are creating a demand bubble that's going to pop." Maybe from 2019 though, so maybe they were just waking up to it in 2018.
  - impulser_ 4y ago
    They got themselves in terrible in 2018 because they had a lot of excess inventory from over building when the crypto boom happened. I believe the stock dropped 20+% because of this. They don't want to make that same mistake.
falcolas 4y ago
> anyone with a brain knew the cards weren’t going to gamers Gamers, and industry insiders, knew this. The general public (i.e. most investors) didn't. Most non-desktop gamers couldn't give two figs about the intricacies of the videocard market, they just invest in growing companies/stocks. Or, to put it another way, NVidia Stocks go brrr, buy. Nvidia stock no longer go brrr, complain.
weird-eye-issue 4y ago
Not necessarily. There actually was significant growth in gaming with covid and there were lots of improvements with Nvidia's cards so it would be reasonable to assume most the growth is coming from that. Public companies need to be ahead of risks for investors. If they weren't mentioning crypto mining in earnings reports then that doesn't look good at all.
- JohnJamesRambo 4y ago
  It was for 2017-2018 though.
jetpks 4y ago
Most people don't know what a graphics card is.
impulser_ 4y ago
Doesn't matter. Nvidia needs to provide accurate information on revenues no matter if it obvious or not. AMD doesn't even report sales of semiconductors for gaming consoles under gaming because it's misleading.
tyrfing 4y ago
> My goodness though, anyone with a brain knew the cards weren’t going to gamers. Was this not known to the average investor? If it was so obvious, why did Nvidia never say it? This is a quote from a transcript, and seems representative of how they put it: > ... I would say the large majority of the cryptocurrency demand [is for those] specialized products. There are still small miners that buy GeForces here and there, and that probably also increased the demand of GeForces. While it may be true that everyone knew they were lying or being misleading, that isn't a very good defense.

Xelbair 4y ago

>anyone with a brain knew the cards weren’t going to gamers. you answered this yourself.

kelnos 4y ago

Maybe, maybe not. But the point isn't who the products were going to, it's just that the explosive growth was driven by an unusual, unpredictable customer base, and Nvidia should have disclosed that future growth would be affected if the cryptocurrency mining landscape (something far more volatile than the "regular" market for GPUs) were to change. I agree that it seems dumb for the average investor not to know this, but this is just how this sort of thing works.

lukeschlather 4y ago
What's confusing to me is I swear I've read press releases from Nvidia that have clearly said "we're not adding new GPU production capacity because cryptocurrency miners are creating a demand bubble that's going to pop." Maybe from 2019 though, so maybe they were just waking up to it in 2018.
- impulser_ 4y ago
  They got themselves in terrible in 2018 because they had a lot of excess inventory from over building when the crypto boom happened. I believe the stock dropped 20+% because of this. They don't want to make that same mistake.

falcolas 4y ago

> anyone with a brain knew the cards weren’t going to gamers Gamers, and industry insiders, knew this. The general public (i.e. most investors) didn't. Most non-desktop gamers couldn't give two figs about the intricacies of the videocard market, they just invest in growing companies/stocks. Or, to put it another way, NVidia Stocks go brrr, buy. Nvidia stock no longer go brrr, complain.

weird-eye-issue 4y ago

Not necessarily. There actually was significant growth in gaming with covid and there were lots of improvements with Nvidia's cards so it would be reasonable to assume most the growth is coming from that. Public companies need to be ahead of risks for investors. If they weren't mentioning crypto mining in earnings reports then that doesn't look good at all.

JohnJamesRambo 4y ago
It was for 2017-2018 though.

jetpks 4y ago

Most people don't know what a graphics card is.

impulser_ 4y ago

Doesn't matter. Nvidia needs to provide accurate information on revenues no matter if it obvious or not. AMD doesn't even report sales of semiconductors for gaming consoles under gaming because it's misleading.

tyrfing 4y ago

> My goodness though, anyone with a brain knew the cards weren’t going to gamers. Was this not known to the average investor? If it was so obvious, why did Nvidia never say it? This is a quote from a transcript, and seems representative of how they put it: > ... I would say the large majority of the cryptocurrency demand [is for those] specialized products. There are still small miners that buy GeForces here and there, and that probably also increased the demand of GeForces. While it may be true that everyone knew they were lying or being misleading, that isn't a very good defense.