Nvidia Financing Structure Diffuses Risk
Nvidia's new financing structure reduces risk
NVDA financing structure diffuses risk, says BofA After Nvidia signed MOUs with six top financiers to mobilize $500B of third-party capital via independent platforms, BofA said the firm's "first take is a positive one," adding that "the burden sits with the consortium, not NVDA's balance sheet." This appears to be a pivot away from vendor-financing and the upcoming earnings call could provide "critically needed assurance on its go-forward role in vendor financing" so that free cash flow can be "better directed to a stock that trades at significantly depressed valuation," adds the analyst, who has a Buy rating and $350 price target on Nvidia shares.