It's about what NVidia told their stockholders in reports.
Rather than: "This years growth is fueled by sales to the cryptominer market" (which is a pretty dang volatile market to sell to as a crash will floor nvidia's market with cheap used cards rather than selling overinflated new ones...)
They lied and said: "oh yeah no, totes all those gamers buying cards for sick rigs", and the pc gamer market is much more stable, it's predictable, you know roughly when / how much of the market will be buying new to replace a card that's now too old/limited.
tl;dr they lied about who they were selling to, because the volatility (no guarantee of that market still existing in a year or two's time) would make shareholders understandably nervous.
I have seen several people claim nvidia lied and was telling investors that their increase in sales was because of a fortnight boom but I can't find where nvidia allegedly said that.
It seems like they didn't lie they sold gpu and reported the correct number of gpu sold. The only claim nVidia made was that it marketed these cards to gamers which the SEC acknowledges they did, this isn't a lie.
> In two of its Forms 10-Q for its fiscal year 2018, NVIDIA reported material growth in revenue within its gaming business. NVIDIA had information, however, that this increase in gaming sales was driven in significant part by cryptomining. Despite this, NVIDIA did not disclose in its Forms 10-Q, as it was required to do, these significant earnings and cash flow fluctuations related to a volatile business for investors to ascertain the likelihood that past performance was indicative of future performance.
The issue isn't the number of GPU sold, noone's saying they lied about how many they sold or their profit. They lied about the market conditions for that quarter, to make the growth seem "stable", not from a volatile market that could dry up in 2 years or 2 months...
It's about what NVidia told their stockholders in reports.
Rather than: "This years growth is fueled by sales to the cryptominer market" (which is a pretty dang volatile market to sell to as a crash will floor nvidia's market with cheap used cards rather than selling overinflated new ones...)
They lied and said: "oh yeah no, totes all those gamers buying cards for sick rigs", and the pc gamer market is much more stable, it's predictable, you know roughly when / how much of the market will be buying new to replace a card that's now too old/limited.
tl;dr they lied about who they were selling to, because the volatility (no guarantee of that market still existing in a year or two's time) would make shareholders understandably nervous.