Nvidia CEO Jensen Huang Just Put a Nail in Michael Burry's Bear Case
The "Big Short" investor argues that big tech companies are inflating profits. The evidence tells a different story.
Overview
Michael Burry is no stranger to controversial market calls. The hedge fund manager and founder of Scion Capital cemented his place in Wall Street history by predicting the subprime lending market crash in 2008. His high-stakes bet earned him $100 million, while his investors banked $725 million. The events were immortalized in the movie The Big Short, and Burry still turns heads with his headline-making calls.
The legendary investor's most recent target has been artificial intelligence (AI) and, more specifically, Nvidia (NASDAQ:NVDA). Burry takes issue with the industry's estimates of the useful life of semiconductors used in AI, believing they are too long.
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Originally published at www.fool.com.