Michael Burry raised concerns regarding Nvidia’s long-term stability following the company’s recent quarterly results. Nvidia’s purchase obligations surged from approximately $16 billion to $95.2 billion over the past year. The company disclosed these non-cancellable contracts in its fiscal 2026 10-K filing to secure semiconductor fabrication and advanced packaging capacity.
Burry suggested these obligations create a structural downside risk if demand for AI infrastructure slows. He drew parallels between Nvidia’s current trajectory and Cisco’s performance during the dot-com bust.
The warning coincided with Wall Street firms reiterating bullish calls and raising price targets to $300. However, Nvidia shares fell more than 4-5% after the earnings announcement. This market reaction indicates that strong financial results failed to resolve investor concerns over high valuations and future growth sustainability.