By Moz Farooque ACCA
Publication Date: 2025-11-28 11:36:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) is trying to calm Wall Street after rumors began swirling that it helps customers pay for chips, just as some high-profile short sellers have started taking aim at the stock.
Over the weekend, the company sent analysts a 7-page memo strongly denying that it uses vendor financing, a controversial practice where companies lend to customers to boost sales. Nvidia said its books are clean, its model is transparent, and its customers normally pay within about 53 days, not over years like in past accounting scandals. It also rejected comparisons to Enron and Lucent.
The pushback comes as critics get louder. Investor Jim Chanos (Trades, Portfolio) has suggested Nvidia might be backing money-losing AI companies to support demand, pointing to relationships with CoreWeave and Nebius. Michael Burry (Trades, Portfolio) raised similar concerns, warning about what he called questionable revenue practices across the AI industry. Nvidia insists demand for its chips is still off the charts and says it does not bankroll customers.
investors are now questioning not just how much Nvidia sells, but how those sales are being financed. Nvidia denies the claims, but the spotlight from short sellers is only getting brighter.
