NVIDIA's reliance on self-backed AI labs for a quarter of its 2028 revenue growth raises questions about circular financing, even as the chipmaker maintains a robust balance sheet with minimal debt.
Article highlights that ~25% of NVIDIA's fiscal 2028 revenue depends on AI labs it backs, raising circular financing concerns despite strong financials.
NVIDIA's fiscal 2028 outlook reveals that approximately 25% of projected revenue stems from AI labs supported by the company's own balance sheet. While management defends these investments as strategic infrastructure expansion, analysts are monitoring the potential for circular financing risks as the firm's equity portfolio surges to $99 billion.
Investors are concerned about 'circular financing,' where NVIDIA invests in AI labs that subsequently use those funds to purchase NVIDIA's own products, potentially inflating revenue figures.