“I’m about to ruin this man’s whole career.” -Jensen Huang, last night in the studio

Nvidia just pulled a full Eminem diss track on Michael Burry (Mr. “Nvidia = Cisco 2.0”) by quietly slipping a seven-page, back-alley dossier to Wall Street analysts refuting everything he’s been yapping about on Twitter.

And if you’re wondering just how pissed ole Jensen is, the first page of the memo literally name-checks Michael Burry. Directly. (It’s getting hot in here, did someone turn the thermostat up?).

For weeks, Burry’s been out here telling anyone with half a brain (and $349 to burn on Substack) that Nvidia is replaying the dot-com hardware bubble… the kind Cisco rode straight into a concrete wall in 2000. He keeps warning that today’s GPU arms race looks suspiciously like the 1990s telecom buildout. You know the usual suspects… insane capex, almost impossible demand projections, and depreciation schedules written by Hallmark movie screenwriters.

So Nvidia went: “Aight bet,” and wrote a memo that can only be described as corporate subtweeting.

(Source: Barrons)

The chipmaker kicked things off by citing “Michael Burry on Twitter” as Source #1 (incredible journalism from the $3T king) and then tried to dismantle everything line-by-line like a Reddit mod banning someone for posting “misinformation”.

Nvidia’s first swipe was stock-based comp. They implied Burry does math to only fit his Alex Jones like conspiracy theories, saying they’ve repurchased $91 billion since 2018, not the $112.5 billion he claims, and that he accidentally counted RSU taxes. Then came Silicon Valley’s go-to copium hit: “Giving employees stock doesn’t mean anything shady. Trust me.”

Next came depreciation schedules. Burry insists companies are pretending GPUs last six years just to justify lighting capex money on fire. Nvidia fired back and said customers depreciate over four to six years because the hardware actually lasts that long… and oh by the way, A100s from 2020 are still working overtime, so maybe chill.

Then there’s “circular financing.” Burry claims Nvidia invests in AI startups who immediately spend the money back with Nvidia, like that hilarious circle jerk meme that’s been making waves on social media. Nvidia’s response was essentially, “Bro, that barely counts.” Translation: “Please stop saying that where journalists can hear you.”

(Source: CNBC)

But none of that hits as hard as Burry’s counterpunch from his digital bunker: “I am not claiming Nvidia is Enron. It is clearly Cisco.” Clearly the man’s not backing down now.

His whole argument is that the GPU boom looks a lot like the 1999 telecom fiber binge… tens of billions thrown into infrastructure that barely got used. By 2001, less than 5% of that fiber capacity ever lit up. He’s saying we’re doing it again with AI data centers. And sitting squarely in the middle of it all? You guessed it, Nvidia.

In my opinion, Jensen and Co. didn’t have to go this hard, but clearly they took it personally. You know a nerve’s been hit when a trillion-dollar titan sends a secret “hey, please stop listening to this man” memo to analysts. The whole thing screams circle-the-wagons energy. And the memo might as well have included, “Yes, we read the Substack. No, you can’t prove it.”

This whole thing is going to be entertaining, but Burry does have one dead-on point… Nvidia loves investing in AI startups that immediately turn around and spend every dollar on (shockingly) more Nvidia.

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.