Jim Chanos says Nvidia funding its own customers to inflate sales could crash stock market

Wall Street is staring at Nvidia again after a fresh fight broke out between the chip giant and two of the most feared short sellers alive. Over the weekend, Nvidia sent a seven-page memo to analysts denying that it uses vendor financing, a method where suppliers loan money to their own buyers. The Substack post that triggered the memo compared Nvidia to Enron and Lucent. Enron broke after hiding debt off its balance sheet during the internet boom. Lucent broke after loaning money to customers that later failed. The writer said Nvidia now fits that same pattern through what was described as circular financing . Jim Chanos, the investor known for calling the collapse of Enron, said the comparison between Nvidia and Lucent makes sense. When the dot-com crash hit and the payments stopped, Lucent wrote off billions. Chanos calls out Nvidia’s customer cash loop In an interview with Yahoo...

https://www.cryptopolitan.com/chanos-says-nvidia-will-crash-the-market/