Nvidia pushes back on Burry's AI-chip depreciation bear case, citing longer customer depreciation schedules
What happened
Nvidia is publicly pushing back on the depreciation bear thesis advanced by Michael Burry and other AI-boom skeptics. In a blog post Thursday by senior product marketing manager Shruti Koparkar, Nvidia noted that 'over the years, every major operator has extended the depreciation schedule on its servers,' with big customers like Meta Platforms and Alphabet's Google now assuming a six-year depreciation life for AI servers, up from about four years previously. Nvidia shares rose ~1.6% to $234.67 on Friday, near their all-time closing high of $235.74 from May. Burry is not conceding: in a social-media post Thursday he argued that rising rental prices for older chips reflect computing scarcity rather than chips holding their value, and predicted prices for older hardware will drop sharply once more efficient processors arrive.
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Start your free 14-day trialWho’s affected
- Nvidia (NVDA) directly — the depreciation debate is central to the bear case on its valuation and on AI-capex durability. Positive read-through for hyperscaler customers (Meta, Alphabet/Google, Microsoft, Amazon, Oracle) whose AI capex accounting is implicitly defended; if depreciation assumptions were challenged, their reported margins could be questioned too.
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