Nvidia(US:NVDA) 3 6 Ke·2025-11-28 10:14Core Viewpoint - The ongoing conflict between Michael Burry, known as the "Big Short," and Nvidia is intensifying, with Burry criticizing Nvidia's internal memo as disappointing and filled with "straw man arguments" [1][4]. Group 1: Burry's Critique - Burry expressed disbelief that a company of Nvidia's stature would respond to criticism with what he perceives as a misleading memo, which he described as reading "almost like a scam" [1]. - He continues to hold put options against Nvidia and Palantir, signaling his bearish outlook on these AI companies [3][9]. - Burry argues that Nvidia's memo misrepresents his criticisms, particularly regarding the depreciation policies of their fixed assets, which he claims are not the focus of his critique [4][6]. Group 2: Nvidia's Defense - Nvidia distributed a seven-page memo to Wall Street analysts to counter accusations of accounting fraud, circular financing, and an AI bubble, asserting that their financial reporting is robust and transparent [11]. - The company clarified that its customers typically depreciate GPUs over four to six years, countering claims that AI chips have a lifespan of only two to three years [11]. - Nvidia emphasized that its strategic investments in the third quarter were only $3.7 billion, a small fraction of its revenue, dismissing the notion of circular financing as unfounded [11]. Group 3: Market Reaction and Context - Following Burry's warnings and the release of earnings reports, Nvidia's stock has declined approximately 14% from its peak on November 3, indicating a shift in investor sentiment towards AI-related companies [2][10]. - Palantir's stock has also dropped 20% from recent highs, despite significant gains year-to-date, reflecting growing concerns about the sustainability of AI valuations [10].