NVIDIA Unpaid Customer Invoices Jump $24.6 Billion, Raising AI Financing Concerns

NVIDIA’s unpaid customer invoices surged by $24.6 billion in six months, reaching $63.1 billion as of July 26. Five direct customers accounted for 70% of the outstanding balance. NVIDIA attributed the increase to longer payment terms offered to large investment-grade customers, ranging from 90 days to one year. Its days sales outstanding also increased to 60 days in July from 45 days in April. CFO Colette Kress rejected concerns about circular financing, saying, “We know some will call this circular financing. We see it differently.” Investors will watch the November 17 earnings update for further clarity.

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