A new fourth class action lawsuit has been lodged against NVidia yesterday along the same lines as the others:
https://www.techspot.com/news/78060...-lawsuits-following-cryptocurrency-crash.html
"According to the Complaint, the Company made false and misleading statements to the market. NVIDIA touted its ability to monitor the cryptocurrency market and make rapid changes to its business as necessary. The Company claimed to be “masters at managing our channel, and we understand the channel very well.” NVIDIA also claimed to the market that any drop off in demand for its GPUs amongst cryptocurrency miners would not negatively impact the Company’s business because of strong demand for GPUs from the gaming market. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about NVIDIA, investors suffered damages."
Nvidia's stock is still plummeting and seems to show little sign of stabilising. The business model urgently needs to be reviewed if NVidia is going to survive in the longer term. The current strategy is highly dangerous as it is a single technology unique to NVidia and at a price point few will buy into. This leaves a massive gap in the market for other entrants such as Intel, Google, AMD, etc etc to exploit and if they can produce a decent card which will sell for $600 - 800 they will take a large chuck of NVidias market share. It seems that Jensen thought the good times would last forever, and built a strategy of ever increasing prices on the assumption buyers would always stump up the readies for his latest cards.
A business strategy which sees a launch of slimmed down cards at lower prices would be the most sensible move, as it closes the door on a market gap and makes it much more difficult for new entrants to gain a foothold in the market, as many have commented here, they probably would buy a new value line of GPU but won't shell out for RTX at the current prices.