Journalists: A Ponzi Scheme is not a generic name for an investment scam. It is a very specific investment scam. It is misleading to refer to NVIDIA’s circular financing scheme as a Ponzi Scheme. They are booking payments as investment and then having that same money come back to you as revenue, which drives up their share price. Because NVIDIA’s P/E is 30, $1 of money moved in this way translates to a $30 increase in NVIDIA’s market cap (possibly more, because this shows growth, which pushes up the P/E). This allows NVIDIA to issue more shares and repay the current investment. This has some similarities with a Ponzi scheme: it relies on new investors putting money in and it allows early investors to cash out using money from new investors. But it is a different mechanism and a different-shaped flow of money. In the interest of accuracy, please refer to it as a Huang Scheme.