NVIDIA Hid Reliance on Cryptocurrency Mining, Investors Say

Chipmaker NVIDIA Corp. hid its dependence on cryptocurrency mining rig sales for revenue growth, investors said in a lawsuit filed Dec. 21.

NVIDIA misled investors about its ability to stay profitable as wildly fluctuating cryptocurrency prices played havoc with demand for its graphics processing units, according to the would-be class complaint filed in the U.S. District Court for the Northern District of California. Iron Workers Local 580 Joint Funds is the lead plaintiff.

Although NVIDIA’s chips previously saw use mostly in computer gaming, they have become sought after for use in machines designed to create new units of cryptocurrencies like ...