'Big Short' Michael Burry warns Nvidia stock could dive, AI 'tokenmaxxing' won't last - Business Insider

Renowned investor Michael Burry has issued a stark warning about NVIDIA stock, suggesting it is vulnerable to a sharp decline. In recent Substack posts, Burry noted that the conditions for a significa... Read original →

Burry’s warning exposes structural fragility beneath AI-driven euphoria. Technically, a pullback in 3nm/Hopper orders from top clients would slash EUV utilization and destabilize TSMC’s (Taiwan, China) CoWoS advanced packaging pipeline, triggering inventory corrections across the supply chain. On compliance, U.S. export controls on AI chips to China are inflating NVIDIA’s operational costs, while its 64% receivables concentration makes revenue highly vulnerable to geopolitical shocks. Competitively, AMD and Intel are accelerating MI300 and Gaudi3 ecosystem lock-in, while Microsoft pushes Maia ASICs to reduce GPU dependency. Over the next 12–24 months, the sector will shift from AI arms-race spending to ROI-driven rationalization—capital expenditure cuts may idle capacity at second-tier foundries, favoring vertically integrated players with superior energy efficiency and heterogeneous integration capabilities.