Nvidia Faces a Crypto Wild Card
Nvidia's (NASDAQ: NVDA) graphics cards are good at the type of number-crunching necessary to mine a variety of cryptocurrencies. While this demand from miners has boosted sales, it's difficult to tell exactly how much.
Nvidia got into trouble with the SEC for its behavior back in 2017-2018, the last time cryptocurrency prices entered bubble territory. The SEC charged the company with failing to provide adequate disclosures related to the impact of cryptocurrency mining on its gaming business. Nvidia agreed to pay a $5.5 million penalty this month to settle those charges.
The ongoing cryptocurrency bubble is much bigger, and it's just as hard to tell how much of an impact it's having on Nvidia's revenue. While the company has plenty of growth opportunities beyond cryptocurrency mining, investors should be prepared for a negative surprise.
Source Fool.com