Nvidia Rebuts Fraud Allegations in Memo to Analysts
Chipmaker denies "circular financing" claims; stock stabilizes as Raymond James reiterates buy
Nvidia (NVDA) issued a detailed memo to analysts, specifically rebutting fraud allegations that had pressured its stock price the previous week. The allegations, publicized by short-sellers, centered on "circular financing"—the theory that Nvidia invests in cloud startups which then use that capital to buy Nvidia chips, artificially inflating revenue.
The Defense
In the memo, Nvidia categorically denied using special purpose vehicles (SPVs) or vendor financing to boost sales. * Strategic Investments: The company clarified that its investments in partners (like CoreWeave) represent a negligible fraction of its total revenue and are fully disclosed. * Revenue Quality: Nvidia emphasized that …
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