X @郭明錤 (Ming-Chi Kuo)

Days Sales Outstanding (DSO) Analysis - The report challenges the claim that Nvidia's increased DSO from an average of 46 days (FY2020-2024) to 53 days (Q3 FY26) indicates financial irregularities or fraud [1] - The analysis points out that the concentration of Nvidia's accounts receivable has significantly increased from an average of 238% (FY2020-2024) to 65% (Q3 FY26) [1] - The increase in DSO is attributed to the increased customer concentration, reflecting the bargaining power of large customers, particularly major Cloud Service Providers (CSPs) with longer payment terms [1] - The report argues that comparing Nvidia's DSO to companies with non-CSP clients is inappropriate, as companies with CSP clients like Arista, Celestica, and Vertiv typically have DSOs of 60-70 days or more [1] Inventory Analysis - The report refutes the assertion that Nvidia's 32% QoQ increase in inventory in Q3 FY26 is a "inventory paradox," citing an incorrect claim about Q2 FY23 inventory [2][3] - The analysis corrects the claim, stating that Q2 FY23 inventory actually grew by approximately 23% QoQ to $3889 billion, not decreased [3] - The 32% increase in Q3 FY26 inventory aligns with TSMC's CoWoS average monthly capacity growth of 25-30% QoQ to approximately 60kwpm in 3Q25 [3] - The significant growth of approximately 98% QoQ to $8735 billion in Work-In-Process (WIP), which constitutes 442% of Q3 FY26 inventory, reflects the ramp-up and mass production of the new Blackwell B300 chips starting in 3Q25, indicating preparation for strong demand [3]