By nickthomas2@benzinga.com
Publication Date: 2025-11-27 01:01:00
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Michael Burry, the hedge fund manager who famously predicted the 2008 financial crisis, just delivered a scathing analysis of Nvidia Corp. (NASDAQ:NVDA) that challenges the AI darling’s reputation as a shareholder-friendly company—and his numbers tell a story Wall Street might prefer to ignore.
In a recent post on X, Burry dissected Nvidia’s financials from 2018 through mid-2025, revealing what he sees as a fundamental disconnect between the chipmaker’s impressive earnings and what actually landed in shareholders’ pockets. The critique centers on a practice that’s become endemic across Big Tech: using stock-based compensation to offset share buybacks, effectively canceling out what should benefit existing investors.
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According to Burry’s analysis, Nvidia generated $205 billion in cumulative net income and $188 billion in free cash flow during the period examined. The company also executed $112.5 billion in share buybacks—an aggressive capital return program by any standard.
But here’s where it gets uncomfortable: Nvidia simultaneously issued $20.5 billion worth of stock-based compensation to employees. When valued at grant prices, Burry said this dilution offset the entire $112.5 billion buyback effort, increasing shares outstanding by 47 million despite the massive repurchase program.
The figures align with Nvidia’s…
