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Michael Burry Warns Nvidia Faces Dotcom Bubble Risks

11/25/2025

43 9 Full Breakdown

Summary

Story summary

Investor Michael Burry has intensified criticism of Nvidia, likening the AI boom to the dotcom era and warning about stock-based compensation and circular financing.
He also says Nvidia misrepresented its buyback figures.
Nvidia countered with a memo that its compensation follows industry standards and GPUs retain value.
Even with strong earnings, Burry remains skeptical and warns of bubble-like risks for investors.

History

Historical Context

The dot-com bubble peaked in March 2000, with the Nasdaq Composite index soaring 600% since 1995. However, by October 2002, it had plummeted 78%, leading to the collapse of many firms like Pets.com. Investor Michael Burry's critique of Nvidia's financial practices reflects ongoing concerns about inflated tech valuations, emphasizing the need for careful scrutiny of financial metrics to prevent repeating past mistakes.

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Story summary

Investor Michael Burry has intensified criticism of Nvidia, likening the AI boom to the dotcom era and warning about stock-based compensation and circular financing.
He also says Nvidia misrepresented its buyback figures.
Nvidia countered with a memo that its compensation follows industry standards and GPUs retain value.
Even with strong earnings, Burry remains skeptical and warns of bubble-like risks for investors.

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