Nvidia Battles Michael Burry's Bearish Blitz as Reddit Debates the AI Bubble

Michael Burry launched a $379 annual Substack newsletter,
$NVDA to lay out his bearish AI bubble thesis.
Nvidia sent a private memo to Wall Street analysts directly refuting Burry’s claims about stock-based compensation and buybacks.
Reddit conversation surged, with
$NVDA ranking as the top ticker by discussion volume and a sentiment score of 0.54.

No single stock dominated retail-investor conversation on Monday quite like

$NVDA. The chipmaker found itself at the center of a furious debate after legendary short-seller Michael Burry launched a paid Substack newsletter — titled Cassandra Unchained — to lay out his bearish AI thesis, and Nvidia’s investor relations team fired back with a detailed private memo refuting specific accounting criticisms.

Burry Goes All In on the AI Crash Narrative

The Big Short investor — who deregistered his hedge fund — now plans to air his views for $379 a year. In his launch post, Burry drew direct parallels between the late-1990s dot-com bubble and today’s AI frenzy, specifically singling out

$NVDA as a company whose stock-based compensation and buyback practices raised red flags.

On r/stocks, a post linking to the CNBC report garnered more than 2,400 upvotes and 550 comments, making it the highest-engagement thread of the day for

$NVDA. The subreddit’s overall sentiment toward the stock remained slightly bullish at 0.59, but the comment threads were deeply polarized. Many users questioned Burry’s motives — noting he now has a financial incentive to attract subscribers by being provocative — while others conceded that the valuation argument deserves scrutiny.

Nvidia Fires Back

Adding fuel to the fire, Nvidia’s investor relations team sent a seven-page memo to Wall Street analysts over the weekend directly addressing what it called “a dozen claims made by skeptical investors.” The document, printed in the company’s trademark green font, began by rebutting Burry’s claim that

$NVDA repurchased $112.5 billion in shares since 2018, asserting the actual figure was $91 billion and that Burry had incorrectly included restricted stock units.

A separate r/stocks post about the memo drew nearly 800 upvotes and 185 comments. Several Reddit users praised Nvidia’s transparency, while others noted that Burry had already seen the memo and disagreed with its conclusions, promising a more detailed report in his newsletter.

NVDA

Earnings Strength vs. Accounting Questions

The debate comes on the heels of

$NVDA’s strong Q3 earnings, which showed 63% revenue growth to $57 billion, driven by AI chip demand. The Motley Fool noted that a potential red flag in the report was a significant increase in accounts receivable, which could signal financial risk if customers slow down payments.

Retail investors on r/stocks did not ignore this tension. Several threads dissected the receivable figures alongside Burry’s broader critiques, reflecting a user base that is increasingly sophisticated about parsing financial statements. The overall sentiment remained net positive, but the conversation was notably more cautious than in previous weeks.

The Bigger Picture: AI Bubble or Not?

Burry’s launch also reignited a broader narrative on r/stocks about whether the entire AI trade is overdone. The Motley Fool highlighted the contrast between Burry’s bearish stance and Warren Buffett’s decision to invest $4 billion in Alphabet, framing the divergence as a key investor debate.

For now,

$NVDA remains the poster child for both sides of the argument — a company with explosive revenue growth and a stock price that, to critics, has already priced in a decade of perfection.

Subscribe to Tendie.bot for more market recaps.