X @郭明錤 (Ming-Chi Kuo)

Days Sales Outstanding (DSO) Analysis - Critics argue Nvidia's DSO increase from an average of 46 days in FY2020-2024 to 53 days in Q3 FY26 indicates financial irregularities [1] - The increase in DSO is reasonable due to a shift in accounts receivable concentration, with major customers accounting for 65% in Q3 FY26, up from an average of 238% in FY2020-2024 [2] - Cloud service providers (CSPs) have significant bargaining power and historically operate with longer payment terms, justifying the rise in DSO [3] - Nvidia's 53-day DSO is reasonable when compared to suppliers like Arista, Celestica, and Vertiv, whose DSOs typically exceed 60-70 days [3] Inventory Analysis - Critics describe the 32% QoQ increase in Nvidia's Q3 FY26 inventory as a "paradox" [3] - Q2 FY23 inventory increased by roughly 23% QoQ to USD 3889 billion, contradicting claims of a decline [4] - The 32% increase in Q3 FY26 inventory aligns with the ramp in upstream capacity, with TSMC's CoWoS average monthly output growing by roughly 25-30% QoQ to around 60kwpm [5] - Work-in-Process (WIP) represented 442% of Nvidia's total inventory in Q3 FY26, surging about 98% QoQ to USD 8735 billion, reflecting the ramp and mass production of the new Blackwell B300 GPU [5]