Burry Defends Nvidia Critique

Burry Defends Nvidia Critique

25 November 2025

What happened

Michael Burry reaffirmed his critical assessment of Nvidia's financial health, specifically challenging the sustainability of chip demand, the actual cost of stock dilution, and the economic basis of AI-related transactions. Burry contends that reported end-customer demand is inflated by a circular funding model where customers are financed by their suppliers. He highlighted that despite Nvidia's $113 billion stock repurchases since 2018, outstanding shares increased by 47 million, and estimated the $20.5 billion spent on stock-based compensation resulted in an effective dilution cost of $112.5 billion, halving shareholder earnings. Nvidia's investor relations team is actively refuting these claims.

Why it matters

The re-assertion of concerns regarding Nvidia's demand sustainability and the discrepancy between reported stock-based compensation and actual dilution introduces a significant oversight burden for financial analysts and procurement teams. This situation increases exposure to less transparent demand indicators and raises due diligence requirements for assessing supplier financial health and the true cost of equity-based compensation. The active refutation by Nvidia's investor relations team further complicates the reconciliation of conflicting financial narratives, impacting compliance and investment decision-making processes.

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Published on 24 November 2025

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Burry Defends Nvidia Critique