Ming-Chi Kuo Fires Back At Nvidia 'Fraud' Critics, Says Claims Are Built On 'Factual Errors' — 'Far From Being Evidence...'

Kuo took to X connected Monday and dismissed the conception that the company’s Days Sales Outstanding (DSO) and inventory levels were abnormal. He argued that the figures reported by NVIDIA are successful enactment with modular fiscal practices and the industry’s structure, and are not indicative of fraud.

“It is wholly tenable for DSO to emergence arsenic receivables go much concentrated successful a fistful of ample customers. This reflects the bargaining powerfulness of cardinal accounts,” wrote Kuo.

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As per the analyst, critics besides misjudged Nvidia's show by comparing its DSO to the incorrect adjacent group. When measured against suppliers that merchantability to the aforesaid unreality work providers, which commonly person DSOs supra 60–70 days.

Explaining the disapproval implicit inventory, Kuo said that the critics’ assertion of Nvidia's 32% quarter-over-quarter inventory leap successful Q3 FY26 being suspicious rests connected factual errors: Nvidia's Q2 FY23 inventory really roseate astir 23% QoQ, not declined, and the caller 32% summation aligns with a large ramp-up successful upstream capableness astatine TSMC (NASDAQ:TSM). The surge is mostly owed to a 98% leap successful work-in-process tied to the wide accumulation of the caller Blackwell B300 GPU was “far from being grounds of fraud,” and showed mentation for beardown request for the B300.

Kuo’s comments travel astatine a clip erstwhile NVIDIA’s fiscal practices are nether scrutiny. Independent researcher Shanaka Anslem Perera reported connected Nov. 21 connected a blog that calls retired a “$610 Billion Fraud” and constituent retired that Nvidia's financials amusement respective reddish flags, including an 89% surge successful accounts receivable, longer outgo cycles, a 32% emergence successful inventory, and weaker currency conversion compared with peers.