1. Michael Burry, famous investor known for predicting the housing crisis, is waging a war against Nvidia, claiming that its stock-based compensation has cost shareholders billions and its AI customers are in a circular financing scheme.
2. Burry has accused Nvidia of cooking their books by slow-walking depreciation on equipment and overstating customer demand. Despite Nvidia's recent strong earnings report, Burry maintains that the company is overvalued and may be destined for a collapse similar to Cisco in the late 1990s.
3. Burry has launched a Substack called "Cassandra Unchained" to prosecute his case against Nvidia and the entire AI industrial complex, gaining a rapidly growing audience of over 90,000 subscribers in just a week. His actions may have already triggered some selling of Nvidia shares, and his bearish thesis could potentially create a self-fulfilling crisis of confidence if enough investors believe him.