Michael Burry Takes On Nvidia in a Thanksgiving Showdown
by Mighva Verma - 2 weeks ago - 2 min read
This Thanksgiving, while most focused on the holiday bustle, investor Michael Burry is intensifying a high-profile war with Nvidia , the AI hardware giant. Burry, famed for predicting the 2008 housing crash in "The Big Short," is betting heavily against Nvidia’s soaring stock and the broader AI boom, shaking up Wall Street’s AI euphoria.
Burry contends Nvidia’s current valuation and AI-driven growth rest on shaky accounting practices and inflated customer demand. He claims shares-based compensations have drastically diluted earnings and accuses AI data centers of overstating equipment lifespans to mask soaring capital expenses. Drawing parallels to Cisco’s late 90s tech bubble burst, Burry fears Nvidia may be at the epicenter of an overbuilt AI frenzy destined to crash.
Nvidia’s Rebuttal and Burry’s Response
Nvidia fired back with a detailed analyst memo defending their buyback math and stock compensation policies, denying the company resembles infamous accounting scandals. They emphasize the durability and extended utility of their GPUs, arguing depreciation periods are justified. Burry remains unmoved, maintaining his critical stance and underscoring this battle as not just about tech, but the risk of a speculative AI bubble with fragile foundations.
With regulatory hurdles behind him, Burry has launched a subscription newsletter "Cassandra Unchained" to amplify his bearish thesis to over 90,000 subscribers. His provocative commentary, mixing analysis with historical parallels, is cultivating a growing movement skeptical of AI’s juggernaut rise and Nvidia’s place atop it.
The Market’s Tipping Point
As Nvidia’s share price faces volatility and investor nerves flare, all eyes remain on whether Burry can sway the market to question the AI boom’s sustainability. His bet isn’t just financial it’s a challenge to AI’s reigning emperor, Nvidia, and a potential catalyst for the very collapse he warns about. In this drama, the question remains: Will Burry be the canary in the AI coal mine, or just another contrarian voice?
This article captures the tension, stakes, and key details from the source while delivering energetic, fact-based storytelling fit for a tech news outlet focused on financial battles in AI innovation.