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Nvidia’s chips may be novel, but its ‘circular financing’ isn’t
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NEWSDECK ANALYSIS
Nvidia is a leading manufacturer of graphics processing units and other specialized chips, with a wide range of customers including tech companies and gamers. The practice of circular financing, where a company provides financial support to its customers to facilitate purchases, is not uncommon in the technology industry, particularly for high-value or complex products. This type of financing arrangement can help companies like Nvidia to drive sales growth and increase market share, but it can also raise concerns about the sustainability of their business model.
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Nvidia’s chips may be novel, but its ‘circular financing’ isn’t
Chipmaker is basically writing cheques to enable its customers to buy more of its products than they could otherwise afford
29 Jul, 16:36
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