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Investment Strategies / Index Investing
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Author: tecmo   😊 😞
Number: of 285 
Subject: Re: Bubble Watch
Date: 11/12/25 4:10 PM
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https://www.cnbc.com/2025/11/11/big-short-investor...

‘Big Short’ investor Michael Burry accuses AI hyperscalers of artificially boosting earnings


“Understating depreciation by extending useful life of assets artificially boosts earnings - one of the more common frauds of the modern era,” Burry wrote. “Massively ramping capex through purchase of Nvidia chips/servers on a 2-3 yr product cycle should not result in the extension of useful lives of compute equipment. Yet this is exactly what all the hyperscalers have done.”


He has a point... the idea that these GPUs are still going to be providing value 3+ years from now seems unlikely.


tecmo
...

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