NVIDIA posted $57 billion in revenue and nearly $32 billion in profit, but many experts warn of the risk of an AI bubble.
NVIDIA shocked Wall Street with its latest quarterly financial report showing revenue of $57 billion.
Net profit of nearly 32 billion USD is an unprecedented number in the history of the semiconductor industry.
However, receivables soared to $33.4 billion and the average days receivable (DSO) (which reflects the average number of days it takes a business to collect on credit sales) extended to a worrying 53 days.
NVIDIA's inventory also increased sharply to nearly $20 billion, contradicting claims of excessive GPU demand.
Cash flow from operations was only $23.7 billion, much lower than accounting profit.
NVIDIA's growth is largely dependent on spending commitments from a small group of AI companies, experts warn.
Many investment funds are concerned that the AI industry is growing faster than its ability to generate real profits from customers.
Although still the “king of AI chips,” NVIDIA could be the first to be affected if the AI bubble really bursts.
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