zz NVDA: Fraud, Revenue Misrepresentation And Insider Sell

[Dzeko]

zz

https://seekingalpha.com/instablog/5066 ... er-selling

Sep. 06, 2023

"Thesis Summary
NVIDIA, Inc (NVDA) reported a Q2 earnings beat, which I recently addressed in this article. However, I feel compelled to write another piece in light of all the information (and speculation) that has come to light in recent days.

The last Q2 results show that part of NVIDIA’s Q2 revenues come from contracts that have not yet been paid. Furthermore, the 10-Q filing also mentions specifically as a risk factor that a lot of the Q2 revenues are attributable to 1-2 clients.

One of these large clients could be CoreWeave, a start-up, partly funded by NVIDIA, which recently received a $2.3 billion line of credit using NVIDIA’s H100 as collateral. CoreWeave is mostly funded by Magnetar, a hedge fund best known for aiding in the proliferation of CDOs during the Great Financial Crisis, while also actively betting against the housing market.

To top things off, NVIDIA’s CEO and CFO have recently sold shares, and insiders at CoreWeave are also looking for a payday.

We have evidence to support the idea that NVIDIA’s Q2 revenues were overstated, at least to the extent that some of these services have yet to be delivered, and that there is significant risk from demand being quite concentrated.

Beyond that, one could argue that NVIDIA is complicit in a plan to create the illusion that demand is higher than it is. (I am not) The fact that H100’s are being used as collateral to fund their purchase shows that, at least to some degree, this AI chip demand is being driven by speculation."

[Dzeko]

Disclosure: I have a tiny LONG position
YMYD

[Dzeko]

Another interesting name is APLD ...

[gambitnyc]

去年的文章，已经跌过了

[fyou]

养CoreWeave是为了在gpu cloud上有自己话语权
狗/软/麻都有自己的gpu替代芯片方案，理论上女大做生意，要照顾利于自家生态圈的分销商
时移世易，去查h100的销售情况，软脸还是最大客户的，CoreWeave和剩下几个cloud商持平

[Dzeko]

去年的文章，已经跌过了

good catch! But I think it is still relevant and not being addressed. APLD is another example ...

[Dzeko]

https://www.cnbc.com/2024/05/17/ai-star ... leads.html
"A CoreWeave spokesperson declined to comment on whether the company is using Nvidia GPUs as collateral for the fresh debt financing. Such GPUs were used as collateral in a $2.3 billion debt round last year, Reuters reported."