Nvidia’s $500 Billion Surge Meets a Wall of Doubt | US Crypto News
Nvidia's massive $500 billion rebound is met with skepticism as SoftBank sells its stake and Michael Burry warns of potential accounting fraud.Summary
Nvidia experienced a significant $500 billion market capitalization surge in just two trading days, reigniting the AI trade and bringing its valuation to $5.1 trillion, representing 8.5% of the S&P 500. However, this euphoria is tempered by cautionary signals. SoftBank recently sold its entire $5.83 billion Nvidia stake in October as part of an asset monetization strategy, even while reaffirming its commitment to AI investments. Simultaneously, Michael Burry warned that hyperscalers might be artificially inflating earnings by understating depreciation on AI infrastructure purchased from Nvidia, potentially overstating profits for companies like Oracle and Meta. Furthermore, analysts suggest that current AI valuations require unrealistic revenue growth or a collapse in capital expenditure, which would negatively impact Nvidia's chip sales.
(Source：BeInCrypto)