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AI Rally Faces New Tests As Burry Doubles Down, Nvidia Pushes Back

Fresh guidance alongside mega-contracts sharpens the split between bubble warnings and claims of durable demand.

Overview

  • Michael Burry reaffirmed his bearish case on Nvidia after the company circulated an analyst memo rebutting his critiques, following his billion‑dollar put bets and Cisco comparison.
  • Nvidia reiterated blockbuster demand with guidance of roughly $65 billion for the January quarter, even as its shares and many smaller AI plays trade below recent highs.
  • A Bank of America survey reported 45% of investors now see an AI bubble as the top market risk, with critics highlighting market concentration and opaque, reciprocal financing.
  • Fresh spending pledges kept the build‑out rolling, including Amazon’s plan of up to $50 billion for U.S. government AI and UBS’s forecast for annual AI outlays to reach $375 billion this year and top $3 trillion by 2030.
  • Proponents argue demand is durable, citing multi‑year industrial backlogs at Quanta Services, Eaton, GE Vernova and Vertiv, and product momentum such as Google’s Gemini 3.