‘Big Short’ Michael Burry fires shots at major AI stock

Core Insights - Nvidia reported a significant increase in revenue and provided optimistic guidance, indicating that the AI build-out is accelerating rapidly [1][5][7] - Michael Burry, known for his contrarian views, has raised concerns about the sustainability of Nvidia's growth, questioning inflated AI spending estimates and the implications of extended depreciation schedules [2][4][8] Financial Performance - Nvidia's Q3 revenue reached $57 billion, representing a 62% year-over-year increase and a 22% quarter-over-quarter increase, surpassing Wall Street's expectation of $54.9 billion [6] - Earnings per share (EPS) were reported at $1.30, slightly above the estimated $1.26, supported by gross margins exceeding 73% [6] - The data center segment generated $51.2 billion in revenue, accounting for approximately 90% of Nvidia's total revenue, driven by high demand for Blackwell systems [6] Future Outlook - Nvidia projected Q4 revenue of $65 billion, significantly higher than the consensus estimate of $61-$62 billion, suggesting continued momentum in the AI sector [7] - CEO Jensen Huang maintains that the current boom in AI is far from over, contrasting with Burry's skepticism [3][4]