Nvidia Rejects Michael Burry’s Claims of Financial Irregularities
Nvidia has forcefully denied allegations by short-seller Michael Burry, who suggested the chipmaker's financial reporting obscures depreciation gaps and circular financing in its AI business. The company called the claims a misrepresentation of its accounting practices, supply chain dynamics, and capital allocation.
The firm stated its $3.7B in strategic investments for Q3—and $4.7B year-to-date—represent normal operations rather than financial engineering. Nvidia emphasized its 53-day sales outstanding metric has remained consistent for years, with no use of special-purpose vehicles or vendor financing schemes.
The rebuttal comes as scrutiny intensifies on tech companies' depreciation methods for AI infrastructure. Burry had previously warned of potential 'earnings inflation' through extended useful-life assumptions for hardware—a practice Nvidia now explicitly distances itself from.
