NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) is facing a review by the US Supreme Court in a case that could set a precedent for shareholders filing securities fraud lawsuits. The company is seeking to dismiss a lawsuit alleging it misled investors about its dependence on revenue from cryptocurrency mining before the market downturn in 2018.
Pre-market futures pick up where they left off on Friday: bifurcated. While we've seen more than +1.2% gains on the S&P 500 and +2.2% on the Nasdaq over the past week of trading, the Dow has dropped nearly -1% and the small-cap Russell 2000 -1.5% over the same time period.
We've seen many notable splits in recent years, with companies aiming to increase liquidity within shares and erase barriers to entry for potential investors.
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The U.S. Supreme Court agreed on Monday to hear a bid by Nvidia to scuttle a securities fraud lawsuit accusing the artificial intelligence chipmaker of misleading investors about how much of its sales went to the volatile cryptocurrency industry.
The underlying cause of Nvidia's success is critical to long-term investors.
Nvidia Corporation NVDA possibly ranks among the most contentious enterprises currently from an anticipated capital-gains perspective.
Dell Technologies (NYSE: DELL ) COO Jeff Clarke recently said that graphics processing units are artificial intelligence's brain, while networking is its heart and data storage allows it to breathe. In other words, the proliferation of AI, enabled by Nvidia's (NASDAQ: NVDA ) GPUs, is leading to tremendous demand for data storage software.
Tech rally has predominantly fueled the market upside in the current bull run, and a wealth manager said on Saturday that Nvidia Corp. NVDA in particular has drawn investments out of the other sectors and even the rest of the tech stocks.
Several Nvidia insiders, including CEO Jensen Huang, have sold shares in recent weeks. There's more to the story with these insider sales, though.
AI is revolutionizing the world, but is impacting select stocks unevenly. Invesco AI and Next Gen Software ETF offers exposure to AI and next-gen software sectors. IGPT has heavy weighting in Nvidia, and may not offer a true pure play on the AI theme.
After a mixed Friday (June 14) session for the US equity markets, economic data from China will set the tone for the Asian markets on Monday (June 17).