Nvidia’s recent financial performance, exceeding expectations and raising guidance, has raised eyebrows due to its resemblance to revenue inflation tactics seen during the dot-com bubble.
- Company A buys GPUs from Nvidia.
- Nvidia buys cloud computing credits from Company A.
- Both companies report these transactions as revenue.
Commitments to cloud computing services have surged, doubling to nearly $9 billion, involving companies like CoreWeave, Amazon, Microsoft, Google, and Oracle.
Source:
How did Nvidia manage to exceed expectations and raise guidance? Jensen Huang, having experienced the dot-com era, seems to have applied some familiar revenue inflation tactics.
For those who remember the dot-com bubble, "round-trip trading" or "ad swapping" was a common… pic.twitter.com/UE1dW7gl4B
— Kakashii (@kakashiii111) May 28, 2024
Nvidia $NVDA closed today at a $2.8T market cap
Making it:
> the 3rd largest company in the world
> up +136.79% year to date
> worth more than Meta, Tesla, Netflix, AMD, Intel, and IBM combined
> worth more than the entire Canadian stock market pic.twitter.com/wzuoeBKv92— Michael Burry Stock Tracker ♟ (@burrytracker) May 28, 2024