By KED Global
Publication Date: 2025-11-25 04:35:00
Nvidia Corp. is mounting a forceful defense against rising skepticism over the durability of the artificial intelligence boom, circulating a seven-page fact-check memo to major shareholders worldwide that challenges allegations of circular financing, inflated earnings and waning demand, according to people familiar with the document on Monday.
The shareholder material, delivered after a strong quarterly report was followed by a sharp pullback in the stock, outlines Nvidia’s view that its fundamentals remain intact and that the forces driving the AI investment cycle continue to strengthen.
Chief Executive Jensen Huang, seeking to steady internal morale, has also urged employees to focus on execution rather than short-term market swings, the people said.
INVENTORY AND RECEIVABLES: NVIDIA RECASTS THE RED FLAGS
A central element of the rebuttal is the company’s 32% rise in inventories.
Nvidia argues that the increase is driven by a deliberate buildup ahead of shipments of its next-generation Blackwell platform, intended to ensure seamless delivery of presold systems rather than signaling softer demand or delays in customer payments, according to the memo.
The world’s most valuable AI chip maker explains that inventory expansion is essential to meeting its $65 billion fourth-quarter revenue guidance and emphasizes that it ships products only after strict credit checks of enterprise customers.
Nvidia has also pushed back on concerns about…
