Michael Burry, the founder of Scion Asset Management, asserted on X today, November 13, 2026, that the unfolding situation at Nvidia aligns with his prior analysis.
The quoted article highlighted that Nvidia CEO Jensen Huang had questioned the company's aggressive dealmaking, which included "billions of dollars of guarantees to companies that couldn’t afford its chips." It also noted that "Major cloud providers were running away from Nvidia, making plans to use alternative chips and lessen their reliance on the firm." Nvidia's stock (NVDA) is down 4.3% today, trading at $166.19.
Burry's statement implies a significant re-evaluation of the AI economy's stability, particularly concerning Nvidia's financial practices and its relationships with major cloud providers.
Michael Burry, the founder of Scion Asset Management, asserted on X today, November 13, 2026, that the unfolding situation at Nvidia aligns with his prior analysis. Burry posted a lengthy excerpt from a Wall Street Journal article detailing internal issues at Nvidia, prefacing it with: "Is this is not playing out exactly as I and very few others ( et al) outlined for you all over the last year. This is the WSJ headline right now. The sheer enormity of it all. far greater than illicit affairs. Godspeed Colette."
The quoted article highlighted that Nvidia CEO Jensen Huang had questioned the company's aggressive dealmaking, which included "billions of dollars of guarantees to companies that couldn’t afford its chips." It also noted that "Major cloud providers were running away from Nvidia, making plans to use alternative chips and lessen their reliance on the firm." Nvidia's stock (NVDA) is down 4.3% today, trading at $166.19. Recent coverage, S&P 500 Rallies 1.3% on AI Earnings, indicated strong performance in the broader market tied to AI, but also that On-Chain Hack Losses Exceed 2026 Revenue as DeFi TVL Falls 10 Percent, showing some market pressure in other sectors.
Burry's statement implies a significant re-evaluation of the AI economy's stability, particularly concerning Nvidia's financial practices and its relationships with major cloud providers. His view suggests that the current challenges, which include a potential overextension of credit to customers and a move by key partners to diversify chip suppliers, were foreseeable. Investors may watch for further reports on Nvidia's strategic shifts and the broader financial health of the AI sector, especially regarding the sustainability of its growth model.
“Is this is not playing out exactly as I and very few others (@kakashiii111 et al) outlined for you all over the last year. This is the WSJ headline right now. The sheer enormity of it all. far greater than illicit affairs. Godspeed Colette. Major cloud providers were running away from Nvidia, making plans to use alternative chips and lessen their reliance on the firm. Even worse, Huang said, the vast supply of chip wafers and memory Nvidia had committed to buying were coming at him like an 'avalanche.' Three months ago, Jensen Huang belittled her at a meeting, calling her 'a deer in the headlights.' Now she’s replacing him. via @WSJ Jensen Huang summoned his top finance executives to his office this summer. The AI economy, backstopped by Nvidia’s down pointing triangle increasingly outrageous bets, was teetering, and Huang wanted to make sure they were getting it right. Over the course of the meeting, he proceeded to tear into the woman who is now taking over for him as Nvidia CEO. Colette Kress was 'a deer in the headlights,' he said, interrupting her presentation, according to a person familiar with the comments. He had summoned Kress and his senior finance team to diagnose a ballooning problem: Nvidia was in talks to provide billions of dollars of guarantees to companies that couldn’t afford its chips. That included deals led by Huang’s son-in-law, Nico Caprez, who had been offering upstart cloud providers and data-center developers financing in the hopes of turning them into long-term customers. Huang had launched a dealmaking spree and was now starting to question whether it had gone too far, according to people familiar with the matter. Kress was a 'reporting CFO,' not someone who could help him define a strategy or make decisions, Huang said during the August meeting. Then he went on to describe the situation the company was in. Major cloud providers were running away from Nvidia, making plans to use alternative chips and lessen their reliance on the firm. Even worse, Huang said, the vast supply of chip wafers and memory Nvidia had committed to buying were coming at him like an 'avalanche.' Read more at the Wall Street Journal”
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