Nvidia(US:NVDA) Benzinga·2025-11-20 09:16Core Viewpoint - Michael Burry critiques Nvidia's capital allocation strategy, claiming that the $112.5 billion spent on stock buybacks since 2018 has resulted in "zero" additional shareholder value [1][2][3]. Financial Analysis - Burry highlights a disconnect between Nvidia's aggressive share repurchases and the increase in the company's share count, noting that $20.5 billion has been spent on Stock-Based Compensation (SBC) since 2018 [2][3]. - Despite Nvidia reporting $205 billion in net income and $188 billion in free cash flow during the same period, Burry argues that the buybacks primarily offset SBC-related dilution, resulting in 47 million more shares outstanding [3][4]. - Burry asserts that the true cost of SBC dilution was $112.5 billion, which he claims reduced owner's earnings by 50% [3][4]. Market Performance - Nvidia's stock has outperformed the broader market, climbing 34.86% year-to-date compared to 17.03% for the Nasdaq Composite and 17.47% for the Nasdaq 100 [6]. - The stock finished the regular session at $186.52, up 2.85%, and surged another 5.08% in extended trading, with a year-over-year gain of 27.85% [6]. Strategic Initiatives - Nvidia's CFO emphasized the importance of maintaining a strong balance sheet to fund growth and secure supply chains during the recent earnings call [5]. - CEO Jensen Huang mentioned plans for continued stock buybacks and strategic investments in partnerships with companies like OpenAI and Anthropic to enhance the reach of Nvidia's CUDA platform [5].