Nvidia Stock: Earnings Blowout and Bubble Concerns

Generated Title: Michael Burry's Nvidia Obsession: Is He a Prophet, or Just Plain Wrong?

The Burry vs. AI Saga Continues

Okay, so Michael Burry's still banging the drum about Nvidia being overhyped, even after they dropped some supposedly killer earnings numbers. Color me shocked. This guy's been on this AI-bubble-bursting crusade for what feels like forever. You gotta admire the dedication, I guess, even if it feels like he's yelling at a wall.

Nvidia's CFO, Colette Kress, is out there saying they have "$0.5 trillion in Blackwell and Rubin revenue" lined up and that there's potentially "$3 trillion to $4 trillion in annual AI infrastructure build" by 2030. That's a whole lotta chips, folks. And Huang, Nvidia's CEO, basically laughed off the bubble talk. "From our vantage point, we see something very different," he said.

But Burry ain't buying it.

He's back on X, ranting about how these AI companies are cooking the books by stretching out the depreciation on their gear. He even used the airline analogy – keeping old planes around doesn't make them profitable, just marginally useful during peak season. Which, fair point. It's like saying my 2008 Honda Civic is still valuable because it runs.

Then there's this whole tangled web of "give-and-take deals" between Nvidia, OpenAI, Microsoft, Oracle... Burry's take? "True end demand is ridiculously small. Almost all customers are funded by their dealers." So, is he saying it's just a bunch of companies scratching each other's backs with funny money? That the whole AI revolution is built on a house of cards? It's a bold claim, offcourse, and it makes you wonder who's actually using this stuff.

The Stock Buyback Shell Game

And don't even get him started on the stock buybacks. Apparently, Nvidia's bought back $113 billion worth of stock since 2018, but they still have more shares outstanding. He claims the stock-based compensation is diluting owner's earnings by 50%. I mean, come on, is anyone surprised? That's how these tech companies roll. Give execs a mountain of stock options, then use company money to prop up the share price. It's practically a tradition at this point.

Burry caps it off with a simple, yet loaded question: "One more. OpenAI is the linchpin here. Can anyone name their auditor?" What's he implying? That something shady's going on with OpenAI's finances? That they're hiding something? I'm not sure, but it's enough to make you raise an eyebrow.

Honestly, this whole thing feels like watching a tennis match between a hyper-intelligent bear and a Wall Street algorithm. Who do you even root for?

But Is He Seeing Something We're Missing?

Here's the thing: Burry called the housing crisis. He made a fortune betting against the grain. So, when he shouts about an AI bubble, people tend to listen. But is he just a one-hit-wonder? Has he lost his touch? Or is he the only one willing to say what everyone else is afraid to admit? According to some reports, Burry is taking aim at Nvidia after its earnings blowout, continuing to express his concerns about an AI bubble.

On the other hand, you've got Warren Buffett, who notoriously avoids tech stocks, now holding a $4.3 billion stake in Alphabet. Alphabet, of course, is throwing money at AI like it's going out of style. They're bragging about how AI is driving "real business results," and their cloud business is booming thanks to AI workloads. So, is Buffett betting against Burry? Is this some kind of billionaire chess match we're too dumb to understand?

Maybe the real question is: who benefits if the AI bubble bursts? Is Burry just trying to tank the market so he can swoop in and buy up everything on the cheap? Or is he genuinely concerned about the long-term health of the economy?

Then again, maybe I'm just being cynical. Maybe AI is the future. Maybe Nvidia is worth all the hype. Maybe I should just shut up and buy some stock before it's too late. But nah, where's the fun in that?

So, Is Burry a Genius or Just a Grumpy Old Man?

He's probably a bit of both, let's be real.