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In semiconductor markets at the scale Nvidia now occupies, vendor financing introduces a specific concern about revenue quality.
When a chip company extends credit to customers who then deploy those funds to buy its hardware, reported revenue rises without a proportional transfer of economic risk away from the vendor.
That is the mechanism at the center of the "circular financing" criticism Nvidia is now rebutting.
The company projects 70% sales growth for next year and describes its customer financing deals as "excellent" investments carrying "limited" risk.
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