By Rishabh Mishra
Publication Date: 2026-10-04 18:00:00
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“The Big Short” investor Michael Burry compared Nvidia Corp.’s defense of its graphics processing unit depreciation schedules to a 1960s market bubble, saying that “We have all been here before.”
Nvidia’s Depreciation Defense
On Sept. 27, Nvidia presented a slide to investors titled “NVIDIA AI Infrastructure Retains Value Beyond Accelerated Depreciation Schedules.” The presentation plotted the retained value of Nvidia’s A100, H100, and B200 chips against a five-year accelerated depreciation curve. The slide implied that companies are over-depreciating their investments because the hardware maintains high values across generations.
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Burry noted that fans of the company viewed the presentation as a definitive counter to critics questioning how fast the chips should be written off. He specifically highlighted that Nvidia bulls celebrated the data as a victory over market bears.
The 1968 Parallel
In a post titled “Don’t Believe Your Lyin’ Eyes, GPU Depreciation & Useful Lives,” Burry countered Nvidia by referencing Adam Smith’s 1968 book, “The Money Game.” He used a passage from the book to illustrate a historical parallel to current market sentiment.
The excerpt features a speculator named the Great Winfield and a young investor called Billy the Kid. In the story, the Great…
