Investor Burry warns Nvidia’s AI GPU claims echo 1960s tech leasing bubble
Michael Burry, the investor behind The Big Short, argues Nvidia’s AI infrastructure valuations rely on flawed accounting. In his Cassandra Unchained newsletter, Burry criticizes Nvidia’s use of discounted cash flow models to project GPU residual values, calling them an ‘apples-to-oranges’ comparison against standard five-year depreciation schedules. He claims these projections overstate hardware…
Key points
- Burry says Nvidia’s GPU residual-value claims use discounted cash flow models, not real resale prices
- he compares Nvidia’s eight-year DCF projections to five-year depreciation schedules as misleading
- older GPU rentals rose due to supply shortages, not hardware durability, Burry argues
Burry also notes that recent rebounds in older GPU rental rates—such as Nvidia’s A100 and H100—stem from supply-chain bottlenecks, not durable demand. He warns that widespread GPU-backed debt financing and private credit for AI expansion mirrors the unsustainable 1960s computer-leasing bubble. Burry recently shifted his portfolio, covering short positions in Nvidia and other tech stocks while buying September 2027 put options on Nvidia at strikes in the mid-$100s.
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Michael Burry Warns Nvidia, AI Infrastructure Expansion Mirroring 1960s Computer Leasing Bubble
finance.yahoo.com · 1 October 2026Loading the full article…
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