Nvidia Looks Cheap. Here's 1 Reason I'd Still Be Cautious.

Despite Nvidia's impressive 106% quarterly revenue growth and relatively low P/E ratio of 27, the article warns investors to be cautious. The main concern is that 70% of Nvidia's accounts receivable comes from just five customers, and the company engages in circular financing with major clients like CoreWeave, OpenAI, and Anthropic—providing capital, credit support, and purchasing commitments. This financing model mirrors practices from the dot-com boom that led to massive write-offs for companies like Cisco and Lucent, raising questions about revenue sustainability if interest rates continue rising.