‘Almost Reads like a Hoax’, says Michael Burry, Wall Street’s one of the biggest investor, on Nvidia memo – The Times of India

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‘Almost Reads like a Hoax’, says Michael Burry, Wall Street’s one of the biggest investor, on Nvidia memo – The Times of India

By TOI Tech Desk
Publication Date: 2025-11-27 07:08:00

Michael Burry, the Wall Street investor who is known for predicting the 2008 housing crash has now intensified his criticism of Nvidia and other AI giants. Burry has accused them of overspending and misleading the investors. As reported by Business Insider, in his new post shared on Substak, Burry has described Nvidia’s recent memo to analysts as “one straw man after another” and said it “almost reads like a hoax.” The title of the post shared by Burry reads, “Unicorns and Cockroaches: Blessed Fraud.”

Burry’s critique of Nvidia

Burry has argued that Nvidia’s rebuttal misinterpreted his concerns. Burry wrote that he never suggested that the company is dragging out depreciation of its property, plant and equipment. He noted that Nividia is mainly a chip designer with minimal capital expenditures. “No one cares about Nvidia’s own depreciation. One straw man burnt,” he wrote.Along with this, Burry also dismissed Nvidia’s defense that older-generation chips remain in use, emphasising that his real concern is the risk of functional obsolescence for newer chips between 2026 and 2028. “I am looking forward because I see problems that are relevant to investors today. A second straw man burnt,” he added, calling Nvidia’s response “disingenuous on the face, and disappointing.”Burry has also revealed that he still hold put options against Nvidia and Palantir, signaling his bearish stance on two of the most prominent names in the AI boom. Nvidia and…

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