Nvidia says it's not Enron. Michael Burry makes a different dot-com parallel.

Dow Jones11-25

MW Nvidia says it's not Enron. Michael Burry makes a different dot-com parallel.

By Steve Goldstein

Nvidia's investor-relations team reportedly made the case that is not engaging in fraud the way Enron did. Michael Burry is making a different dot-com metaphor.

Nvidia and Michael Burry, the famed investor who was chronicled in The Big Short by spotting the subprime bubble, appear to be in a war of words.

According to Barron's, Nvidia's investor relations team sent a memo to Wall Street analysts refuting key points of Burry's recent arguments against the graphics chipmakers, on topics ranging from its use of stock-based compensation to accounting practices. But it's clearly the latter topic that has the chipmaker on edge, and the perception that it's engaged in vendor financing to make demand appear strong.

"NVIDIA does not resemble historical accounting frauds because NVIDIA's underlying business is economically sound, our reporting is complete and transparent, and we care about our reputation for integrity," the memo said, according to Barron's. "Unlike Enron, NVIDIA does not use Special Purpose Entities to hide debt and inflate revenue."

Burry, who has disclosed bets against Nvidia and Palantir via put contracts, isn't backing down.

"Nvidia emailed a memo to Wall Street sell side analysts to push back on my arguments on SBC and Depreciation. I stand by my analysis," he said on his new and wildly popular Substack, Cassandra Unchained. "As well, I am not claiming Nvidia is Enron. It is clearly Cisco."

Cisco $(CSCO)$ was not an accounting fraud, but it was briefly the world's most valuable company during the dot-com bubble, a crown Nvidia wears today. Now Cisco, which like Nvidia provided the backbone of a new technology, still exists but as the 28th largest company in the S&P 500.

Nvidia stock (NVDA) rose on Monday but its shares are down about 14% from the late October peak.

-Steve Goldstein

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November 25, 2025 05:04 ET (10:04 GMT)

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Comments

mark2012
11-25
mark2012
Michael is just trying to stay in the public eyes so he can sell his newsletter, given he had to close his fund.[Happy] so he was right in 2008, so what? Nvidia will do well. They shoukd just state this and keep up with the great results and ignore the critics.
- dw321:
  Google TPU progress won’t hurt Nvdia demand meh?