US-based chipmaking giant, Nvidia Corp., in a seven-page memo response, refuted ‘big short’ investor Michael Burry’s claims, who has been arguing that the artificial intelligence (AI) investment boom is replaying the dotcom bubble from the 1990s, reported the news portal CNBC.Investor Michael Burry, the founder of now-dissolved Scion Asset Management and one of the early people to bet against the US housing market in 2008, used a financial instrument like credit default swaps (CDS).Also Read | Mega-cap stocks lead earnings growth for S&P 500 in September quarterBurry’s bet paid off big after the housing market crashed due to the subprime mortgage crisis, making him $100 million back in 2008. After terminating the registration status of his hedge fund, Burry has now turned his attention to a potential AI bubble in the US market.Nvidia’s pushback on Michael BurryNvidia allegedly sent its seven-page responses to the sell-side analysts on Wall Street in an effort to push back on Michael Burry’s claims on the company’s stock-based compensation and the depreciation of its GPU chips, reported the news portal, citing Burry’s Substack post.Nvidia said that the US-based chipmaker repurchased $91 billion shares in 2018, and not $112.5 billion, which Burry claimed, citing that the ‘big short’ investor incorrectly included Restricted Stock Units (RSUs) in the calculation.Also Read | Are AI stocks in a bubble? What market experts say“Nvidia repurchased $91B shares since 2018, not $112.5B; Mr. Burry appears to have incorrectly included RSU taxes,” the company said, cited the news portal.The company also said that the equity grants to the employees are not to be combined with the performance of the repurchase program.“Employee equity grants should not be conflated with the performance of the repurchase program. NVIDIA’s employee compensation is consistent with that of peers. Employees benefiting from a rising share price does not indicate the original equity grants were excessive at the time of issuance,” said Nvidia, cited in the news portal’s report.Nvidia’s take on depreciation of GPU chipsAccording to the CNBC report, Nvidia countered Michael Burry’s claims, saying that the customers depreciate the GPUs over four to six years based on the real-world longevity and utilisation patterns of these chips.Also Read | Jensen Huang rejects AI bubble fears, says Nvidia sees ‘very different’The company also said that the older GPUs, like A100s, which were released in 2020, continued at high utilisation rates and retain meaningful economic value beyond the critics’ claims of two to three years.Burry claimed that Nvidia is allegedly using “circular financing”, and the company’s strategic investment represents a small fraction of revenue, and that the AI startups raise capital from outside investors. Nvidia rejected these allegations, according to the report.Is Nvidia like Cisco? Burry draws a parallel‘Big short’ investors Michael Burry d in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. 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Nvidia dismisses the assertions made by ‘big short’ investor Michael Burry, as comparisons to Cisco raise doubts about the AI bubble.
