"Yet as demand has grown, accelerating Nvidia's revenue expansion to $57 billion in the third quarter, a 62% year-over-year increase and more than double what it generated in all of 2023, questions from influential investors doubting the sustainability of this rise are also mounting. Worse, they're raising the specter that Nvidia's growth is not as organic as it seems, likening it instead to one of the worst accounting scandals ever: Enron."
"Nvidia just lashed out against these accusations of impropriety, privately circulating a seven-page rebuttal to analysts dismissing charges of supplier-provided funding to encourage customer purchases, practices linked to Enron's off-balance-sheet dealings and the early-2000s downfall of telecom equipment maker Lucent. Nvidia asserts that, unlike Lucent, it does not depend on such arrangements to drive revenue. The company highlights that its customers typically settle invoices within an average of 53 days, reflecting a straightforward sales process for high-performance products."
Nvidia transformed from a gaming-chip maker into a leading AI-systems supplier, driving a 1,000% stock surge and a $4.3 trillion market capitalization. Revenue reached $57 billion in the third quarter, a 62% year-over-year increase and more than double full-year 2023. Influential investors and short sellers allege vendor-financing circular deals artificially inflated sales and have bet billions on a potential collapse. Nvidia circulated a seven-page rebuttal denying supplier-provided funding to boost purchases, stating it does not rely on such arrangements, that customers settle invoices in an average of 53 days, and that it discloses significant investments including a minority stake in CoreWeave.
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