By Namrata Sen
Publication Date: 2025-11-24 12:12:00
Ming-Chi Kuo, a prominent tech analyst, has weighed in on the recent financial results of NVIDIA Corporation (NASDAQ:NVDA) and debunked myths of “fraud” surrounding its metrics.
Kuo Dismisses Criticism Over DSO, Inventory Levels
Kuo took to X on Monday and dismissed the notion that the company’s Days Sales Outstanding (DSO) and inventory levels were abnormal. He argued that the figures reported by NVIDIA are in line with standard financial practices and the industry’s structure, and are not indicative of fraud.
“It is entirely reasonable for DSO to rise as receivables become more concentrated in a handful of large customers. This reflects the bargaining power of key accounts,” wrote Kuo.
As per the analyst, critics also misjudged Nvidia’s performance by comparing its DSO to the wrong peer group. When measured against suppliers that sell to the same cloud service providers, which commonly have DSOs above 60–70 days.
Explaining the criticism over inventory, Kuo said that the critics’ claim of Nvidia’s 32% quarter-over-quarter inventory jump in Q3 FY26 being suspicious rests on factual errors: Nvidia’s Q2 FY23 inventory actually rose about 23% QoQ, not declined, and the recent 32% increase aligns with a major ramp-up in upstream capacity at TSMC (NASDAQ:TSM). The surge is largely due to a 98% jump in work-in-process tied to the mass production of the new Blackwell B300 GPU was “far from being evidence of fraud,” and showed preparation for strong demand…
