Core Viewpoint - Nvidia has become a focal point in discussions regarding the value of AI and related stocks due to a series of stock sell-offs and accounting fraud allegations, prompting the company to respond to market skepticism with a detailed memo addressing twelve key concerns raised by investors [1][2]. Group 1: Nvidia's Response to Investor Concerns - Nvidia's investor relations team sent a seven-page memo to Wall Street analysts addressing various doubts, including a response to Michael Burry's criticism regarding stock-based compensation dilution and stock buybacks, clarifying that the total amount spent on share repurchases since 2018 is $91 billion, not the $112.5 billion claimed by Burry [2]. - The memo also refuted allegations comparing Nvidia's situation to historical accounting fraud cases, asserting that the company's core business fundamentals are strong and its financial reporting is transparent, emphasizing that it does not use special purpose entities to hide debt or inflate profits [2]. - Nvidia addressed concerns about the economic value of its hardware, stating that customers set GPU depreciation periods based on actual usage, with older models like the A100 still generating significant profits, contrary to claims that their economic lifespan is only 2 to 3 years [2]. Group 2: Analyst Insights on Financial Metrics - Analyst Ming-Chi Kuo stated that Nvidia's financial results align with industry norms, countering claims of anomalies in accounts receivable turnover days (Days Sales Outstanding, DSO) and inventory levels [3]. - Kuo explained that the increase in DSO from an average of 46 days (2020-2024) to 53 days in Q3 2026 is reasonable due to a significant rise in customer concentration from 23.8% to 65%, reflecting the bargaining power of major customers [4]. - Regarding inventory, Kuo clarified that the reported 32% increase in inventory for Q3 2026 is consistent with industry trends and that the majority of the inventory consists of work-in-progress items, indicating preparations for strong demand for the new Blackwell B300 chip [6].

Core Viewpoint - Nidec Corp's shares experienced a significant decline of up to 22.44% following the announcement of an investigation into alleged improper accounting practices at its Chinese subsidiary, Nidec Techno Motor, which may involve the company's management [1][2]. Group 1 - The company has initiated the formation of an independent third-party committee to conduct an investigation into the alleged malpractice at its subsidiary [1]. - An internal investigation revealed evidence suggesting a connection between the alleged accounting issues and Nidec's management [1]. - This incident represents the largest single-day drop in the company's stock price [2]. Group 2 - Nidec acknowledged limitations in its previous investigation system, which involved external experts and was led by members of the Audit and Supervisory Committee [2]. - The company emphasized the necessity for objective investigations conducted by a third-party committee that is independent of Nidec [2].