Core Viewpoint - Legendary hedge fund manager Michael Burry has raised concerns about major tech companies underestimating depreciation by artificially extending the useful life of assets, labeling it as one of the most common frauds in modern finance [1][3]. Group 1: Depreciation Concerns - Burry highlights that tech companies are significantly increasing capital expenditures to purchase NVIDIA chips and servers to expand computing power, with typical product cycles lasting only 2 to 3 years, yet some companies are extending depreciation periods to 6 years [3]. - Major tech firms like Meta and Oracle are reportedly engaging in this practice, leading to an estimated underestimation of depreciation by $176 billion from 2026 to 2028 [3]. - Burry estimates that by 2028, Oracle's earnings could be overstated by 26.9% and Meta's by 20.8%, indicating a potentially more severe situation [3]. Group 2: Market Predictions - Prior analysis by Bank of America analyst Justin Post indicated that capital expenditures for Alphabet, Meta, and Amazon are expected to rise significantly in 2024 and 2025, which will likely accelerate depreciation expenses post-2026 [3]. - By 2027, it is projected that the depreciation expenses for these three companies could be underestimated by nearly $16.4 billion, suggesting that their actual profitability may be far below current market consensus [3].

Core Insights - Michael Burry, a legendary hedge fund manager and the inspiration for the protagonist in "The Big Short," has raised concerns about major tech companies manipulating asset depreciation to inflate profits, labeling it as a common fraud [1] - Burry estimates that companies like Meta and Oracle are extending their depreciation periods from the typical 2-3 years to 6 years, leading to an underestimation of depreciation by approximately $176 billion between 2026 and 2028 [1] - He predicts that by 2028, Oracle's earnings could be overstated by 26.9% and Meta's by 20.8%, indicating a significant potential misrepresentation of financial health [1] Company Analysis - Major tech firms, including Meta and Oracle, are reportedly increasing capital expenditures significantly, particularly in acquiring NVIDIA chips and servers to enhance computing power [1] - A previous report by Bank of America analyst Justin Post indicated that Alphabet, Meta, and Amazon are expected to see substantial growth in capital expenditures in 2024 and 2025, which will lead to accelerated depreciation expenses post-2026 [2] - The market consensus suggests that by 2027, the depreciation expenses for these three companies could be underestimated by nearly $16.4 billion, implying that their actual profitability may be much lower than currently perceived [2]

Core Viewpoint - Malaysia is not restricting the use of Nvidia chips or AI chips in servers under the Strategic Trade Act of 2010, but will cooperate with other countries on export control of sensitive goods [1][2] Group 1: Malaysia's Position on AI Chips - Malaysia's Investment, Trade and Industry Ministry states that the use of Nvidia chips in data centers is not classified as controlled goods under local law [1] - The country allows data centers to make independent business decisions while being supervised by relevant ministries [1] - Malaysia opposes any evasion of export controls or illegal trade activities and emphasizes compliance with international trade regulations [1] Group 2: U.S. Export Controls - Since 2022, the U.S. has intensified restrictions on AI chip exports to China, including a ban on Nvidia and AMD from selling advanced chips to the Chinese market [2] - The Trump administration initially imposed a ban on Nvidia's AI chip sales to China, which was later relaxed [2] - China's Ministry of Foreign Affairs has expressed that Chinese companies should operate within the law and opposes coercive restrictions on cooperation with China [2]