By TradingView
Publication Date: 2026-10-01 21:37:00
Renowned investor Michael Burry has issued a stark warning to technology investors, alleging that the aggressive capital deployment into artificial intelligence infrastructure mirrors the unsustainable computer-leasing mania of the late 1960s.
Writing in his Substack newsletter, Cassandra Unchained, Burry highlights what he views as structural accounting and financial flaws in the AI market, specifically targeting Nvidia Corp.’s (NVDA) claims regarding graphics processing unit (GPU) residual values and depreciation schedules.
A point to note is that Burry also repositioned his portfolio last week, replacing short common-stock positions with put options.
Burry covered all his short common-stock positions in Micron (MU), Nebius (NBIS), Caterpillar (CAT), iShares Semiconductor ETF (SOXX), CoreWeave (CRWV), Nvidia (NVDA) and Palantir (PLTR). He replaced the Nvidia short with September 2027 puts at strikes in the mid $100s.
Accounting Realities
At the center of Burry’s criticism is a slide from Nvidia’s late-September investor presentation that showed AI infrastructure retains high residual value well beyond standard five-year accelerated depreciation schedules. Market bulls celebrated the data as evidence of the hardware’s lasting economic value.
However, Burry asserts that the chart—derived from analytics firm Silicon Data—does not reflect actual resale prices for second-hand equipment. Instead, it maps a discounted cash flow (DCF) model based on forward rental-income…
