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Michael Burry expects Nvidia to deliver a blowout quarterly result despite concerns over circular financing and AI hype

Investor Michael Burry expects Nvidia to report a blowout second-quarter result on Wednesday, despite his ongoing bearish stance on the chipmaker. While Wall Street remains largely bullish, Burry argues that roughly 100% of the chipmakers' announced revenue is circular, citing the Bank for International Settlements. He expressed concern that the heavy reliance on a small group of hyperscale customers, such as Microsoft and Amazon, could lead to significant revenue impacts if any major customer reduces spending. Nvidia is projected to report revenue of approximately $92 billion, marking a 96% year-over-year jump. Analysts expect adjusted earnings per share to reach $2.09. Despite the high expectations, Burry maintains several put positions into 2027, highlighting his belief that AI chips lose economic value faster than current depreciation schedules suggest. Meanwhile, the company continues to expand its AI ecosystem, recently announcing a $500 billion capital pool to securitize its GPUs and a massive 8-gigawatt data center in Ohio.

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