'Big Short' investor Michael Burry says Nvidia's memo was 'disappointing' - and he's betting against it and Palantir

"Burry, in a post titled "Unicorns and Cockroaches: Blessed Fraud," wrote that he couldn't believe Nvidia's responses had come from the world's most valuable public company. He said the document contained "one straw man after another" and the memo "almost reads like a hoax." The market veteran, who recently closed his hedge fund to outside cash and turned his focus to writing, said he'd never suggested Nvidia was dragging out the depreciation of its property, plant, and equipment (PP&E)."

""No one cares about Nvidia's own depreciation," he said. "One straw man burnt." Burry also dismissed Nvidia's argument that its older-generation chips are still being used, saying his concern is that newer chips could become functionally obsolete between 2026 and 2028. "I am looking forward because I see problems that are relevant to investors today," he wrote. "A second straw man burnt.""

"In a Tuesday post on his new Substack, the investor of "The Big Short" fame called out Nvidia's recent memo to Wall Street analysts, saying it was responding to claims he didn't make. Burry added that Nvidia's rebuttal to him was "disingenuous on the face, and disappointing." He disclosed in his latest post that he's placed wagers against the chipmaker and another AI darling: "I continue to own puts on Palantir and Nvidia, both of which will be discussed at another time.""

Michael Burry reiterated skepticism of Nvidia's defenses and described the company's memo as full of straw-man arguments and almost hoax-like language. He clarified that he never accused Nvidia of artificially extending PP&E depreciation, noting Nvidia is primarily a chip designer with minimal capital expenditures. He warned that newer-generation AI chips could become functionally obsolete between 2026 and 2028, making future relevance the core concern. He called Nvidia's rebuttal disingenuous and disappointing. He disclosed that he holds bearish put options on both Nvidia and Palantir and indicated further commentary will follow.

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