AI is the biggest misallocation of capital in history… Nvidia now backs $108 billion of OpenAI data center leases… Michael Burry is doubling down on his bearish AI bet.

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The chip sales are huge. The new trick is Nvidia signing the landlord’s paper so the customer can keep buying chips.
That is not Enron. It is also not a clean hardware company anymore.

https://www.stocktitan.net/sec-filings/NVDA/10-q-nvidia-corp-quarterly-earnings-report-ba2938ed4873.html




Operating cash flow in the quarter dropped to about $24 billion while profit was $59.7 billion. Receivables ate the difference.
Nvidia issued $25 billion of new bonds in June.
Bank of America put the whole backstop-and-investment stack near $300 to $500 billion.
Burry also added shorts in Oracle, Palantir, Nebius and Caterpillar. Short stock now over 21 percent of his book.

https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-second-quarter-fiscal-2027

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