Nvidia’s Last Quarter Was Nearly Perfect. One Number in the Fine Print Wasn’t.

Nvidia reported impressive fiscal Q2 results with 106% revenue growth and strong guidance for 70% annual growth. However, the company's Days Sales Outstanding (DSO) increased from 45 to 60 days, indicating customers are taking longer to pay. This reflects Nvidia's strategy of offering extended payment terms to lock in multi-year deals and help finance customer orders, raising questions about whether demand is artificially inflated and warranting close monitoring in upcoming quarters.