Check out these two charts. This is a tomahawk dunk, a killshot.Palantir accounts receivable grew 20x while revenue growth grew 6x. DSO rose form 20 to 67 days. Q4 though is the seasonal low, and seasonal lows have been rising - 20 → 44 → 40 → 46 → 55 → 63 → 67 days. Today’s “best” quarter (67 days) is worse than the peak quarters of 2020–2021. The floor keeps rising. Government customers pay slower, but mix is far more commercial now. Larger deals are longer cycles, but Adobe does big deals and its DSO has ...

Core Viewpoint - Nvidia's stock has experienced significant volatility despite strong quarterly results, with concerns raised about the increase in Days Sales Outstanding (DSO) potentially indicating financial irregularities [3][4][5]. Company Overview - Nvidia is a leading technology firm specializing in graphics processing units and artificial intelligence solutions, with a market capitalization of $4.32 trillion, making it the world's most valuable company [2]. Financial Performance - Nvidia reported a substantial increase in free cash flow, surging 64% sequentially to over $22 billion, indicating strong cash management despite concerns over DSO [6][7]. Days Sales Outstanding (DSO) Analysis - DSO has increased from an average of 46 days in FY2020-2024 to 53 days in Q3 FY26, raising alarms among some investors who equate this with potential financial issues [5][8]. - The rise in DSO is attributed to a higher concentration of receivables among a few large customers, particularly cloud service providers, which traditionally have longer payment terms [8][9]. - Analysts argue that Nvidia's DSO is reasonable when compared to other suppliers serving the same customers, whose DSO typically exceeds 60-70 days [9]. Analyst Sentiment - Despite recent skepticism, Wall Street analysts maintain a strong bullish outlook on Nvidia, with 44 out of 48 analysts rating it a "Strong Buy" and an average price target of $252.33, indicating a 39.3% upside potential [11][12].

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 accounts receivable concentration, with major customers' share rising from 238% in FY2020-2024 to 65% in Q3 FY26 [2] - Cloud service providers (CSPs) have significant bargaining power, leading to longer payment terms and influencing DSO [3] - Comparing Nvidia's DSO to suppliers with similar CSP customers, such as Arista, Celestica, and Vertiv (whose DSOs typically run above 60-70 days), makes Nvidia's 53-day DSO appear reasonable [3] Inventory Analysis - Critics describe the 32% QoQ increase in Nvidia's Q3 FY26 inventory as a "paradox," citing Q2 FY23 as a counterexample [3] - Q2 FY23 inventory increased by roughly 23% QoQ to USD 3889 billion, contradicting the claim of an 18% decline [4] - The 32% increase in Q3 FY26 inventory aligns with the ramp in upstream capacity, as TSMC's CoWoS average monthly output grew by roughly 25-30% QoQ to around 60 thousand wafers per month (kwpm) in 3Q25 [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]

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]