Nvidia CEO Challenges Michael Burry's Bear Case on AI Chip Lifespan
Michael Burry, known for his successful bet against the subprime mortgage market in 2008, has recently criticized Nvidia’s financial reporting practices. He argues that the estimated useful life of Nvidia’s GPUs is overstated at six years and should be reduced to two or three years, which would increase annual depreciation expenses and lower reported profits. Nvidia CEO Jensen Huang countered this argument by highlighting ongoing demand for older GPU models like the A100 Tensor Core. These chips are still in use nearly nine years after their launch, with rental contracts extending through 2029. Additionally, rental prices have increased, indicating continued value and utility of these processors. This development challenges Burry’s bearish stance on Nvidia's financials and suggests that the current depreciation estimates may be conservative rather than inflated.
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