Hopper58 schreef op 25 november 2025 07:45:
NVIDIA (NVDA) Faces Misinterpretation Amid Impressive Earnings
GuruFocus News
11/25/2025 07:10
NVIDIA (NVDA, Financial) reported outstanding third-quarter results, yet its stock price fell due to increased bearish comments. Critics pointed to rising accounts receivable days and inventory as concerns. However, analyst Ming-Chi Kuo dismissed these worries, stating they overlook NVIDIA's business structure changes. Kuo highlighted that NVIDIA's accounts receivable days increased from an average of 46 days to 53 days, a shift critics misinterpreted as financial deterioration. This change reflects a higher concentration of receivables from major clients, which rose from 23.8% to 65%. Longer payment cycles are typical for large clients like cloud service providers (CSPs), indicating strong bargaining power rather than financial issues. Critics also expressed concerns over NVIDIA's inventory levels, which grew by 32% despite claims of sold-out cloud GPUs. Kuo explained this aligns with upstream capacity expansion trends, such as TSMC's (TSM) increased CoWoS production. Additionally, NVIDIA's inventory growth primarily consists of work-in-process items, reflecting the production of the new B300 GPU architecture, not excess stock. Kuo concluded that the market misinterprets NVIDIA's financial metrics, overlooking customer structure shifts, industry payment terms, and capacity cycles. Changes in receivables and inventory are due to business expansion and new product production, not financial irregularities.
www.gurufocus.com/news/3223198/nvidia...