Michael Burry's $379 Newsletter Launch: AI Bubble Criticism and Impact on Nvidia (NVDA)

Michael Burry, known for predicting the 2008 housing crash, launched a $379 annual Substack newsletter titled ‘Cassandra Unchained’ targeting the AI bubble, with Nvidia (NVDA) as a key focus [1]. Burry compared the AI boom to the dot-com bubble, labeling Nvidia the ‘Cisco of this cycle’ and claiming its stock-based compensation (SBC) accounting inflated owners’ earnings by 50% [2]. Nvidia pushed back with a 7-page memo to analysts defending its financial reporting [2].

The newsletter gained 23k+ subscribers on its first day, translating to ~$8.7M in annual revenue [1]. Nvidia’s stock dropped ~10% this month, with a 6.5% drop from reports of Meta considering Google’s TPUs as an alternative to Nvidia’s GPUs [3]. Subscriber counts vary across sources, with reports ranging from 26k to over 60k [1].

Cross-domain connections include Burry’s reputation as a contrarian genius clashing with accusations of opportunism (cash grab to fund losing shorts on NVDA) [4]. Nvidia faces dual pressures: Burry’s accounting criticism and growing competition from Google’s TPUs, eroding investor confidence [2,3]. The timing of Burry’s AI bubble thesis remains a key debate point, with many acknowledging potential validity but questioning its immediate relevance [4].

• Risks
  : Burry faces reputational risk from cash grab accusations; Nvidia risks market share loss to Google TPUs and potential regulatory scrutiny if SBC claims hold [2,3].
• Opportunities
  : Burry’s newsletter has significant revenue potential; investors can monitor further developments to gauge AI sector stability [1].

Burry’s newsletter launch highlights ongoing debates about the AI bubble. Nvidia’s response and market performance reflect the impact of high-profile criticism and competitive threats. Subscriber counts and revenue potential underscore the commercial value of Burry’s contrarian voice, while mixed sentiment reveals divided opinions on his motives and thesis validity [1,2,3,4].