Nvidia Private Memo Refuting Burry's Accounting Claims: Market & Reddit Analysis

On November24,2025 (EST), Nvidia issued a private memo to Wall Street analysts refuting Michael Burry’s accounting allegations (SBC dilution, buybacks) [4]. The memo’s authenticity was confirmed by Wall Street sources, while Burry stood by his analysis [1]. Market reaction: NVDA rose +1.7% Nov24 after -7.8% (Nov20) and -1.3% (Nov21) drops, aligning with Tech sector’s +2.085% gain [0,3]. Key metrics: $4.44T market cap, data center revenue (88.3% FY2025),44.77x P/E ratio [0]. Red flag:89% YoY accounts receivable surge (outpacing63% revenue growth) [2].

• Memo content ambiguity (unverified Enron mention) creates uncertainty [4].
• Accounts receivable growth raises collection/channel stuffing risks [2].
• Circular financing (Nvidia investing in chip-buying customers) is an unaddressed long-term risk [2].

: Accounts receivable mismatch [2]; high valuation (44.77x P/E) [0]; circular financing dependency [2]; memo transparency gap [4].
: Strong data center revenue growth [0]; AI chip market leadership.

Nvidia’s memo refutes Burry’s claims but lacks full transparency. Market reaction was mixed with partial rebound. Red flags include accounts receivable surge and circular financing concerns. Decision-makers should monitor upcoming earnings for accounts receivable trends and seek full memo text.