Nvidia rebuts critics in memo to analysts amid pushback campaign

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5 months ago

Nvidia rebuts critics in memo to analysts amid pushback campaign

By Stephen Nellis
Publication Date: 2025-11-27 02:06:00

SAN FRANCISCO, Nov 26 (Reuters) – Nvidia (NVDA.O), opens new tab, the world’s most valuable company, has gone on the defensive against skeptics of its $4.5 trillion valuation, down from a historic $5 trillion, by waging an information campaign on Wall Street and social media.

Last week, the company issued a detailed memo to sell-side stock analysts with a point-by-point rebuttal of claims made by Michael Burry, who was featured in the book and movie “The Big Short,” and others writing on Substack. Burry, who shot to fame for betting against the U.S. housing market ahead of the 2008 financial crisis, is widely watched by investors for his comments on markets and the economy; he has stepped up criticism of Nvidia in recent weeks in a new newsletter.

The memo, seen by Reuters, was published in full by research firm Bernstein on Wednesday. In it, Nvidia responded to a Substack essay by a different author that purported to use an AI analysis of Nvidia’s public financial disclosures to show that inventories were piling up and customers were unable to pay.

Nvidia also provided a detailed rebuttal, pointing to its publicly available disclosures, to say why it should not be compared to historical accounting frauds such as WorldCom, Lucent or Enron. But Nvidia did concede that its most recent Blackwell chips had lower gross margins and higher warranty costs than previous models due to the Blackwell’s complexity.

Nvidia did not respond to a request for comment on the…