"Nvidia repurchased $91B shares since 2018, not $112.5B; Mr. Burry appears to have incorrectly included RSU taxes. Employee equity grants should not be conflated with the performance of the repurchase program. Nvidia's employee compensation is consistent with that of peers. Employees benefiting from a rising share price does not indicate the original equity grants were excessive at the time of issuance."
"Burry has recently gained attention online for going after the AI giant and expressing skepticism about the sustainability of the AI boom. He recently closed his hedge fund, Scion Asset Management, to outside cash, and launched a newsletter. He continued his criticism of Nvidia in the first blog posted to his new Substack, " Cassandra Unchained," which launched on Sunday. In an X post on Monday, Burry acknowledged Nvidia pushing back on his arguments in the memo to analysts, adding, "I stand by my analysis. Obviously, the full analysis does not fit in a tweet. I will release on my timeline.""
Nvidia sent a note to analysts that directly named investor Michael Burry and rebutted his claims about stock-based compensation and repurchases. The company stated it repurchased $91 billion of shares since 2018 and said Burry incorrectly included RSU taxes to reach $112.5 billion. Nvidia argued that employee equity grants should not be conflated with repurchase program performance and that employee compensation is consistent with peers. Michael Burry has expressed skepticism about the sustainability of the AI boom, closed Scion Asset Management to outside cash, launched a newsletter, and said he will publish a fuller analysis on his timeline.
Read at Business Insider
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