Was Michael Burry Right About AI Stocks for the Wrong Reason?

3 hours ago 5

Rich Duprey

Tue, March 24, 2026 astatine 10:18 AM CDT 5 min read

Nvidia (NVDA) and CoreWeave (CRWV) support GPU depreciation schedules of 4 to six years against Michael Burry’s assertion that hyperscalers are inflating profits by $176B done artificially extended utile lives, with CoreWeave citing five-year lawsuit contracts and 95% resale values for older chips similar A100 and H100 models. Palantir (PLTR) is besides nether unit from Burry’s abbreviated position.
Nvidia shares person fallen 14% and Palantir 24% since Burry disclosed large abbreviated positions successful precocious 2025, though broader AI capex sustainability concerns beyond depreciation accounting are besides driving the assemblage selloff. CoreWeave is down 40%.
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Last November, Michael Burry published a pointed critique arguing that large AI players were artificially inflating profits by stretching depreciation schedules connected GPUs and servers acold beyond their real-world usefulness. In his view, hyperscalers are treating cutting-edge chips -- designed by Nvidia for 12- to 18-month obsolescence cycles -- arsenic if they would past 4 to six years.

This accounting maneuver, Burry claimed, understated expenses by up to $176 cardinal betwixt 2026 and 2028, boosting assemblage net by astir 20% and creating a impermanent tailwind that would reverse sharply erstwhile the hype cooled.

Both Nvidia (NASDAQ:NVDA) CEO Jensen Huang and, conscionable days ago, CoreWeave (NASDAQ:CRWV) CEO Michael Intrator person pushed backmost hard. Huang has repeatedly defended the durability of AI infrastructure, portion CoreWeave's main enforcement said that the 18-month obsolescence communicative ignores reality: astir lawsuit contracts tally 5 years, and older GPUs similar A100 and H100 units inactive bid 95% of their archetypal worth arsenic caller usage cases emerge.

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Are Nvidia and CoreWeave really close astir depreciation timelines -- oregon is Burry inactive close wide that the AI nett communicative rests connected shaky foundations?

When Burry archetypal disclosed sizable abbreviated positions successful Nvidia and Palantir Technologies (NYSE:PLTR) done Scion Capital successful precocious 2025, the marketplace hardly flinched. Four months later, the representation looks precise different. Nvidia's shares person slipped 14% and Palantir is down 24%. CoreWeave -- the specialized AI-cloud supplier that has go a poster kid for hyperscale GPU request -- has tumbled astir 40%.

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