Nvidia is not taking the recent wave of criticism lying down. The chip giant, currently valued at $4.5 trillion after slipping from a historic $5 trillion peak, has launched a surprising counterattack to silence skeptics who believe the company’s stock is in a bubble.
The company recently sent a detailed memo to Wall Street analysts to dismantle arguments made by high-profile bears. This includes Michael Burry, the investor who gained fame for predicting the 2008 financial crisis and was portrayed in “The Big Short.” Burry has ramped up his warnings about Nvidia in recent newsletters, drawing nervous investors’ attention.
Nvidia’s defensive campaign didn’t stop at Burry. The company also addressed a viral Substack essay in which the author claimed to use AI to identify irregularities in Nvidia’s financial statements. The author suggested that inventory was piling up and customers weren’t paying their bills. Nvidia firmly rejected these claims and explained why investors should not compare them to historical accounting frauds like Enron or WorldCom.
However, the company did admit to some growing pains. In the memo, Nvidia conceded that its newest Blackwell chips are so complex to manufacture that they currently carry lower profit margins and higher warranty costs than previous generations.
The drama also spilled over onto social media. After reports surfaced that Meta was in talks with Google to buy AI chips—a move that would cut Nvidia out of the loop—Nvidia’s official account posted on X. The company claimed it was “delighted” by Google’s progress but insisted Nvidia’s chips remain “a generation ahead.”
This public reaction confused many onlookers. Investors questioned why the world’s most valuable company felt the need to get into a public spat regarding Google, which remains one of Nvidia’s largest and most important customers. Bernstein published the memo just a day after the stock dipped, signaling that Nvidia is anxious to control the narrative before skepticism spreads further.
