Leo Says 84 – Nvidia has the Blackest Friday

Nvidia recently reported their financial figures for Q3 of 2026 (yes we know, that sounds weird) and the numbers were enormous… however, the immediate response of the market was to dump Nvidia stock and watch the price drop. This was quite unexpected and seemed bizarre until we heard rumours of fraud and shady accounting.

In another unusual – perhaps unique – move Nvidia sent a memo to a handful of financial analysts to rebut these criticisms. Happily we got our hands on this memo and are able to bring it to the audience of KitGuru.

The mechanics of the dispute get a bit technical but in essence consider this scenario: A Hyperscaler buys $1 billion of GPUs each year and makes $200 million revenue; if they write down the investment over three years that looks like a waste of money that might lead to ruin. On the other hand, if they write down the $1 billion over six years that could balance the books, provided the accountants agree and the investors are happy.

Now that Michael Burry of ‘The Big Short' has gone public with his views we see this fight getting messy and doubt the financial people at Nvidia will have a peaceful Christmas…

KitGuru says: What do you make of the situation at Nvidia?

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