Nvidia’s latest quarter wowed investors with revenue hitting $57 billion, up 62% YoY and 22% QoQ, surpassing Wall Street’s expectations. Profits reached $1.30 EPS, driven by data center growth, with revenue from the segment hitting $51.2 billion. The company’s guidance of $65 billion for Q4 signals continued AI build-out momentum.

Scion Asset Management founder Michael Burry questions the sustainability of Nvidia’s growth post-blowout earnings. Burry raised concerns about extended depreciation schedules and inflated AI spending estimates, highlighting risks masked by “dealer-funded” customers. Nvidia CEO Jensen Huang remains optimistic, but Burry’s skepticism lingers.

Burry’s criticism of Nvidia’s record Q3 showing focuses on distorted earnings due to longer depreciation schedules, overstated AI demand, higher operating expenses for older chips, and blurred end-customer demand from industry deals. Burry’s bold contrarian stance challenges the narrative around Nvidia’s performance.

Michael Burry, known for predicting the mid-2000s housing bubble, is now challenging Nvidia’s AI-driven success. Despite managing billions in assets, Burry deregistered Scion Asset Management, focusing on new ventures. His bearish positions on Nvidia and Palantir signal skepticism towards the current AI capital spending trend reminiscent of the dot-com era.

Read more at Yahoo Finance: ‘Big Short’ Michael Burry fires shots at major AI stock