I know these are the charges against nVidia.
But I don't see enough evidence to support them. Maybe they are good at covering their tracks, but these accusations don't hold water from where I stand.
What could be true, and would be very bad, is not if nVidia is another Enron, but that nVidia is another Boston Chicken.
For those who don't know Boston Chicken was not a case of outright fraud. It was a case of vendor financing its clients, which by itself is not bad, but then BC did not cut its losses and call in the debt on its franchisees as a regular bank financing them would have done because (1) it would cut their revenue, albeit at a lower rate, and (2) it would end the high price stock crack cocaine they had been addicted to.
This is a far more recurring problem than Enron. Xerox, GE, and many others have been caught with this, and in all cases it had a substantial and long term negative impact.
So the real thing to worry about is, how dependent is nVidia on financing its clients such as Coreweave, and should they faulter, will they call in the chips, or will they extend a lifeline and double down instead of cutting their losses short. |
