By Yun Li
Publication Date: 2025-11-25 15:55:00
Andrew Toth | FilmMagic | Getty Images
The fight between Nvidia and one of its loudest naysayers, investor Michael Burry, is escalating.
Following the “Big Short” investor’s series of social media posts arguing that the artificial intelligence investment boom is replaying the dotcom bubble from the 1990s, with Nvidia at the center of it, the chipmaker quietly circulated a private memo to analysts that explicitly namechecked Burry to push back on many of his claims.
“Nvidia emailed a memo to Wall Street sell side analysts to push back on my arguments on SBC and Depreciation. I stand by my analysis,” Burry said in a post on Substack, referring to stock-based compensation. “I am not claiming Nvidia is Enron. It is clearly Cisco.”
Burry has repeatedly warned that today’s AI infrastructure frenzy mirrors the late-1990s telecom buildout far more than the dot-com wipeouts investors remember. He pointed to massive capex plans, extended depreciation schedules and soaring valuations as evidence that markets are again mistaking a supply boom for durable demand.
The Nvidia memo, first reported by Barron’s, disputed Burry’s claims around depreciation life.
To Burry’s charge that customers are overstating the useful lives of Nvidia’s Graphics Processing Units in order to justify runaway capex, Nvidia counters that its customers depreciate GPUs over four to six years based on real-world longevity and utilization patterns.
Nvidia added that older GPUs such as A100s (released in 2020)…