“Big Short” investor Michael Burry is refusing to back down from his bearish stance on Nvidia Corp. (NASDAQ:NVDA), publicly reaffirming his analysis just hours after the chipmaker circulated a private memo to Wall Street refuting his claims.
Burry Brushes Off Nvidia's Rebuttal Memo
“I stand by my analysis,” Burry declared on X early Tuesday, directly addressing the company’s note.
Burry dismissed the company’s defense, stating that his full thesis was too complex for a single social media post and promising to release a detailed breakdown on his new Substack series, The Heretic’s Guide to AI's Stars.
NVDA Sends Out Memo Clarifying Its Accounting Processes
The clash intensified after reports surfaced that Nvidia sent a note to analysts denying it resembled historical accounting frauds like Enron—a comparison Burry and other bears have alluded to.
Burry has argued that Nvidia's $112.5 billion in share buybacks provided “zero” shareholder value, serving only to offset dilution from employee stock compensation.
Kuo Dismisses Criticism Over DSO, Inventory Levels
While Burry prepares his “heavier lift” counter-report, other prominent voices are rallying to Nvidia’s defense.
Famed tech analyst Ming-Chi Kuo posted his own rebuttal to the “fraud” narratives on Monday, specifically dismantling claims about Nvidia's Days Sales Outstanding (DSO) and inventory spikes.
“In my view, the reported figures are, in fact, consistent with basic financial common sense,” Kuo wrote. He argued that rising DSO is standard when sales concentrate among a few cloud giants, and that the 32% inventory jump reflects preparation for the new Blackwell B300 chips—”far from being evidence of fraud.”
Despite the heavyweight defense from analysts like Kuo, Burry remains unmoved, signaling that the battle over Nvidia’s valuation is shifting from short tweets to long-form forensic analysis.
Nvidia Outperforms Nasdaq In 2025
Nvidia shares have outpaced the broader market this year, climbing 31.99% year-to-date compared to returns of 18.63% for the Nasdaq Composite and 18.58% for the Nasdaq 100.
On Monday, the stock finished the regular session up 2.05% at $182.55 apiece, before falling by 1.50% in extended trading. Over the last year, the stock has gained 34.21%.
It maintained a stronger price trend over the long term and a weak trend in the short and medium term, with a poor value ranking. Additional performance details, as per Benzinga Edge’s Stock Rankings, are available here.
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