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While many investors argue that\u00a0tech giants\u2019 strong profitability proves there\u2019s no AI bubble<\/strong>, legendary investor\u00a0Michael Burry<\/strong>\u200b has fired back with a sharp rebuttal\u2014drawing eerie parallels to the\u00a01999 dot-com bubble<\/strong>.<\/p>\n\n\n\n Burry points out that the 1999 Nasdaq peak wasn\u2019t driven by money-losing startups<\/strong>, but by high-margin giants<\/strong>\u2014what he calls the “four horsemen”<\/em>: Microsoft, Intel, Dell, and Cisco<\/strong>.“Contrary to popular belief, it wasn\u2019t unprofitable internet companies fueling the boom\u20141999\u2019s soaring Nasdaq was propelled into the new millennium by then-high-margin blue chips…”<\/em>Today, he argues, the AI craze is similarly dominated by “the five public horsemen”<\/strong>\u2014Microsoft, Google, Meta, Amazon, and Oracle<\/strong>\u2014plus startups like OpenAI<\/strong>. These companies plan to spend nearly $3 trillion on AI infrastructure over the next three years<\/strong>.At the center of it all? Nvidia<\/strong>, which Burry compares to Cisco<\/strong>\u2014the dot-com era\u2019s infrastructure provider whose stock plunged over 75% after the bubble burst<\/strong>.“Once again, there\u2019s a Cisco at the heart of it all\u2014one providing the \u2018picks and shovels\u2019 with grand visions. Its name is NVIDIA.”<\/em><\/p>\n\n\n\n In a November 11 teaser<\/strong>, Burry accused tech firms of artificially inflating profits by extending depreciation schedules<\/strong>.<\/p>\n\n\n\n In his latest piece, “The Primary Signs of a Bubble: Supply-Side Gluttony,”<\/strong>\u200b Burry deepens this critique, framing the issue as “catastrophically overbuilt supply and nowhere near enough demand.”<\/strong>\u200b<\/p>\n\n\n\n Facing Burry\u2019s accusations\u2014and broader AI bubble fears\u2014Nvidia fought back aggressively<\/strong>.<\/p>\n\n\n\n Some analysts back Nvidia:<\/p>\n\n\n\n CEO Jensen Huang<\/strong>\u200b dismissed bubble talk:“There\u2019s a lot of discussion about an AI bubble… but from our perspective, we see something very different.”<\/em><\/p>\n\n\n\n Burry published this scathing analysis in his new paid newsletter, Cassandra Unchained<\/em><\/strong>($379\/year<\/strong>).<\/p>\n\n\n\n Fun fact:<\/strong>\u200b After media falsely reported he had 912M<\/em>s<\/em>h<\/em>or<\/em>t<\/em>in<\/em>g<\/em>N<\/em>v<\/em>i<\/em>d<\/em>ia<\/em>\/P<\/em>a<\/em>l<\/em>an<\/em>t<\/em>i<\/em>r<\/em>\u2217\u2217(a<\/em>c<\/em>t<\/em>u<\/em>a<\/em>l<\/em>s<\/em>t<\/em>ak<\/em>e<\/em>:\u2217\u22179.2M<\/strong>), Burry quietly closed Scion Asset Management<\/strong>\u200b and teased a November 25 launch<\/strong>\u200b of his new project.<\/p>\n\n\n\n Burry ends his piece with a\u00a0Charlie Munger quote<\/strong>:“If you go around popping a lot of balloons, you are not going to be the most popular fellow in the room.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" \u200b While many investors argue t…<\/p>\n","protected":false},"author":2,"featured_media":778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,6],"tags":[24,209,39],"class_list":["post-777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies","category-people","tag-ai","tag-bubble","tag-nvidia"],"_links":{"self":[{"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/posts\/777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/comments?post=777"}],"version-history":[{"count":1,"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/posts\/777\/revisions"}],"predecessor-version":[{"id":779,"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/posts\/777\/revisions\/779"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/media\/778"}],"wp:attachment":[{"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/media?parent=777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/categories?post=777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itsmetoo.com\/index.php\/wp-json\/wp\/v2\/tags?post=777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Burry\u2019s Counterargument: History Rhymes<\/strong>\u200b<\/h3>\n\n\n\n
The Real Bubble: Supply-Side Gluttony<\/strong>\u200b<\/h3>\n\n\n\n
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Nvidia Strikes Back: “No Systemic Fraud”<\/strong>\u200b<\/h3>\n\n\n\n
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Burry\u2019s New Business Model: “Knowledge Paywall”<\/strong>\u200b<\/h3>\n\n\n\n
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The Unpopular Prophet?<\/strong>\u200b<\/h3>\n\n\n\n