US investor Michael Burry famed for predicting the 2008 housing crash in the story popularized by The Big Short has again raised the alarm. This time, he argues the current surge in AI and related technology investments resembles the dot-com bubble of the late 1990s and early 2000s. Burry singled out Nvidia, calling it the “Cisco of the AI era,” referencing Cisco Systems, which was a darling of the dot-com boom before its dramatic fall.
Burry’s concern centres on how AI-hardware makers might be inflating near-term profits. He points to the extended depreciation schedules many companies are using for expensive chips — effectively stretching out costs over longer periods and making profitability look better than it may be in reality.
To back his view, Burry’s firm disclosed more than US$1 billion in put options against Nvidia and fellow AI-sector firm Palantir Technologies — a bet that their stock prices will fall.
In response, Nvidia rejected the criticism. The company issued a detailed memo to analysts arguing that older generation GPUs (like its 2020-era models) remain economically valuable thanks to continued high utilization — a rebuttal to claims of accelerated obsolescence.
Meanwhile, the company’s leadership maintains confidence: Nvidia’s CEO Jensen Huang insists the AI boom represents more than speculative hype, emphasizing structural changes in computing and long-term demand for AI infrastructure.
Gulf states lobby US against Iran military strike 
US to host officials from Denmark and Greenland as Trump renews takeover threats 
Canadians aren’t relenting: US travel boycott holds strong 
India Wary as US Backs Pakistan With F-16 Upgrades and Mineral Projects 
Growing discontent in the U.S. as many Americans turn against Trump’s presidency 
Chinese gaming mogul files lawsuit to reclaim US $42 M from ex explosive counters and shocking claims follow 