00:00It's Benzinga, bringing Wall Street to Main Street.
00:03Michael Burry, the big short investor who recently disclosed large put positions against
00:07NVIDIA and Palantir, accused major tech companies of inflating AI-era profits through aggressive
00:12accounting. According to CNBC, the Cyan Asset Management founder alleged that hyperscalers
00:18are understating depreciation by extending the useful life of chips and servers, artificially
00:23boosting earnings. Burry estimated the maneuver could understate depreciation by $176 billion
00:30from 2026 to 2028, overstating Oracle's and Meta's profits by about 27 percent and 21 percent.
00:38Respectively, NVIDIA declined to comment. While CNBC said it couldn't independently confirm
00:43the claims, Burry compared current AI optimism to the 1990s tech bubble and teased more detail
00:48coming on November 25th. NVIDIA shares rose nearly 6 percent Monday after a 7 percent drop
00:54last week. For all things money, visit Benzinga.com.
Comments