Nvidia Probably Can't Keep This Promise, But The Shares Are A Buy Anyway

The month of March has been very good to Nvidia (NASDAQ:NVDA) shareholders. Since the announcement that Nvidia would acquire Mellanox (NASDAQ:MLNX) in a deal worth $6.9 billion, the market seems to be warming up to this once champion growth stock. There is one storm cloud facing Nvidia and that is surrounding its inventory issues. That being said, the Mellanox deal brings enough positives to offset the short-term concerns.

One issue that Nvidia shareholders have been watching carefully is the build of the company’s inventory. The company’s CFO Colette Kress said, “inventory of GPUs caused us to reduce shipments in order to allow excess to sell through.” Going forward, she also said, “we expect channel inventory to normalize in Q1”.

Original source
https://seekingalpha.com/article/4250580-nvidia-probably-keep-promise-shares-buy-anyway?source=feed_all_articles

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