By TOI Business Desk
Publication Date: 2025-11-26 14:48:00
Michael Burry, the investor famed for betting against the US housing market in “The Big Short,” is now shorting Nvidia and Palantir-two flagbearers of the AI rally. In a blistering Substack post, Burry dismissed Nvidia’s internal memo rebutting his concerns as “disingenuous on the face, and disappointing.”He accused the world’s most valuable company of deflecting criticism with “one straw man after another,” charging that Nvidia’s response failed to engage with his actual concerns around depreciation assumptions in the AI ecosystem. The fresh attack comes as investors increasingly debate whether the AI boom has tipped into bubble territory, a Business Insider report said.
Why it matters
The criticism comes at a critical moment: Nvidia stock has dropped 14% from its early-November peak, and broader questions are emerging over whether AI’s gold rush has entered speculative territory.Burry’s remarks tap into mounting investor unease-not about innovation, but about how profits are being propped up by accounting choices that may not age well as chip cycles shorten.
Zoom in: Burry’s beef isn’t with Nvidia’s books-but its customers’
Burry clarified that he never accused Nvidia of stretching out the depreciation of its own factories or equipment. “No one cares about Nvidia’s own depreciation,” he wrote. “One straw man burnt.”Instead, he zeroed in on cloud giants-Microsoft, Meta, Oracle-who are reportedly extending chip and server depreciation…
