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Technology Stocks : AMD, ARMH, INTC, NVDA
AMD 214.87-0.1%Dec 23 3:59 PM EST
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To: engineer who wrote (72354)11/14/2025 8:34:23 PM
From: neolibRead Replies (1) of 73131
 
The depreciation chatter is all driven by the recent news of Michael Burry taking a large short against Nvidia because of this depreciation accounting inflating (in his views) the profits of the hypers. There has been a lot of missinformation around these events.

1) First off, he did not place a $1B short bet. The $1B is supposedly the nominal value of the underlying shares if he took assignment. That is WAY different than what he had at risk.

2) Lots of youtube vids trying to link SoftBank selling all their Nvidia to Burry going public with his short Nvidia. The problem with this is that SoftBank sold their Nvidia back in Oct, not just recently after Burry went public. I think the SoftBank SEC filings perhaps just came out, so that just became public perhaps around the time of Burry's disclosure, but the two events are not linked.

3) Burry then just closed his hedge fund. Not sure what all is going on there, but his short was not working out currently.

4) WRT to the depreciation, indeed it does look like its part of the creative financing that is needed for the AI buildout. The other big problem is that Jensen claims he is the Destroyer of Revenue by each new GPU generation rapidly obsoleting the prior ones, in terms of Tokenomics. Unfortunately, Token Factories, assuming they run comparable models, are fungible, so it comes down to what the economics of continuing to run your current hardware is vs the competition. I think there will in the not too distant future be a race to the bottom in selling tokens. How that plays out in the ROI for the hypers remains to be seen. I could see some prospering and others going belly up.
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