Understanding this chart means understanding NVIDIA's concerns! Currently, NVIDIA's forward purchase commitments and guarantees have skyrocketed to $530.5 billion, while its actual revenue for the quarter is only $96 billion—a record-breaking gap of $434 billion. NVIDIA has been through this before. Back in 2021-2022, right before the consumer GPU bubble burst, purchase commitments also exceeded actual revenue, followed by a severe inventory correction and downward cycle. Many people overlook this data, which is why NVIDIA launched the $500 billion AI fund—to counter the impact of this cycle. But in reality, custom chips (XPUs) from cloud providers and large model companies are far outperforming NVIDIA. For example, OpenAI just released its Jalapeno inference chip. If their CapEx growth slows down, NVIDIA's over $500 billion in off-balance-sheet long-term purchase obligations could face prepayment default pressure. This is the kind of situation the AI industry least wants to see! It’s rarely mentioned, but definitely something to keep an eye on! Sponsored by @binancezh: "Binance Stock Trading—Global assets, zero time lag, instant access!