Ming-Chi Kuo Fires Back At Nvidia 'Fraud' Critics, Says Claims Are Built On 'Factual Errors' — 'Far From Being Evidence...'

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Ming-Chi Kuo, a prominent tech analyst, has weighed in on the recent financial results of NVIDIA Corporation (NASDAQ:NVDA) and debunked myths of “fraud” surrounding its metrics.

Kuo Dismisses Criticism Over DSO, Inventory Levels

Kuo took to X on Monday and dismissed the notion that the company’s Days Sales Outstanding (DSO) and inventory levels were abnormal. He argued that the figures reported by NVIDIA are in line with standard financial practices and the industry’s structure, and are not indicative of fraud.

“It is entirely reasonable for DSO to rise as receivables become more concentrated in a handful of large customers. This reflects the bargaining power of key accounts,” wrote Kuo.

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As per the analyst, critics also misjudged Nvidia's performance by comparing its DSO to the wrong peer group. When measured against suppliers that sell to the same cloud service providers, which commonly have DSOs above 60–70 days.

Explaining the criticism over inventory, Kuo said that the critics’ claim of Nvidia's 32% quarter-over-quarter inventory jump in Q3 FY26 being suspicious rests on factual errors: Nvidia's Q2 FY23 inventory actually rose about 23% QoQ, not declined, and the recent 32% increase aligns with a major ramp-up in upstream capacity at TSMC (NASDAQ:TSM). The surge is largely due to a 98% jump in work-in-process tied to the mass production of the new Blackwell B300 GPU was “far from being evidence of fraud,” and showed preparation for strong demand for the B300.

Critics See ‘Red Flags’

Kuo’s comments come at a time when NVIDIA’s financial practices are under scrutiny. Independent researcher Shanaka Anslem Perera reported on Nov. 21 on a blog that calls out a “$610 Billion Fraud” and point out that Nvidia's financials show several red flags, including an 89% surge in accounts receivable, longer payment cycles, a 32% rise in inventory, and weaker cash conversion compared with peers.

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He also pointed to circular funding flows across the AI ecosystem involving xAI, Microsoft (NASDAQ:MSFT), and Oracle (NYSE:ORCL), suggesting that massive chip purchases are being financed through intertwined investments and credit. Perera highlighted recent large exits by investors such as Peter Thiel, SoftBank, and renowned investor Michael Burry, warning that further drops in Nvidia's stock could trigger forced liquidations and spill over into crypto markets.

At the same time, Burry has publicly questioned NVIDIA’s capital allocation strategy, particularly its aggressive share repurchases. Burry’s analysis suggested that these buybacks did not add any value for shareholders.

Analysts Stay Bullish On Nvidia

Despite the wider sell-off post Nvidia’s results, Wedbush’s Dan Ives remained bullish and said on X, “Nvidia monster earnings were a major validation moment for the AI Revolution despite today’s sell-off.”

At the same time, Venture capitalist Chamath Palihapitiya and his co-host David Friedberg, during the latest episode of the All-In Podcast, slammed Burry's claims of hidden or deceptive accounting are unfounded, noting that all information is fully disclosed in Nvidia's public filings. Friedberg emphasized that investors can easily reconcile earnings and cash flow by reviewing the company's cash flow statement.

Photo: Michael Vi / Shutterstock

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This article Ming-Chi Kuo Fires Back At Nvidia 'Fraud' Critics, Says Claims Are Built On 'Factual Errors' — 'Far From Being Evidence...' originally appeared on Benzinga.com