Michael Burry Just Pulled a 1960s Market Bubble Into Nvidia's AI Debate — ‘We Have All Been Here Before’

“The Big Short” investor Michael Burry compared Nvidia Corp.’s (NASDAQ:NVDA) defense of its graphics processing unit depreciation schedules to a 1960s market bubble, saying that “We have all been here before.” Nvidia’s Depreciation Defense On Sept. 27, Nvidia presented a slide to investors titled “NVIDIA AI Infrastructure Retains Value Beyond Accelerated Depreciation Schedules.” The presentation plotted the retained value of Nvidia’s A100, H100, and B200 chips against a five-year accelerated depreciation curve. The slide implied that companies are over-depreciating their investments because the hardware maintains high values across generations. Burry noted that fans of the company viewed the presentation as a definitive counter to critics questioning how fast the chips should be written off. He specifically highlighted that Nvidia bulls celebrated the data as a victory over market bears. Read Also: Jim Chanos Challenges Jensen Huang Over Nvidia's 'Highly Rentable' AI Chips: 'Why Not Rent Them Out Yourself?' The 1968 Parallel In a post titled “Don’t Believe Your Lyin’ Eyes, GPU Depreciation & Useful Lives,” Burry countered Nvidia by referencing Adam Smith’s 1968 book, “The Money Game.” He used a passage from the book to illustrate a historical parallel to current market sentiment. The excerpt features a speculator named the Great Winfield and a young investor called Billy the Kid. In the story, the Great Winfield mocks a critic for framing questions about “how fast these computers are written off,” declaring such inquiries show the critic is “middle-aged.” Winfield instead champions young investors buying computer leasing stocks. Billy the Kid explains he is buying into data processing companies using leverage, noting he puts up “at least three percent cash.” The ‘New Math’ of Speculation According to the excerpt cited by Burry, the 1960s investors argued the need for computers was “practically infinite,” predicting that earnings would double year after year because “the surface has barely been scratched.” When questioned on the valuations, the young investor smiled, believing the older generation struggled with the “New Math” and the “New Market.” Burry stated that this exchange, published nearly 60 years ago, proves human nature is constant. He explicitly pitched Billy the Kid’s 1968 arguments against the 2026 market tape, warning that the current rhetoric surrounding Nvidia mirrors past speculative frenzies. How Has NVDA Performed in 2026? Price Action: At the last check, the NVDA stock was trading 1.23% higher in premarket on Friday. It is up 23.79% year-to-date, gaining 23.3% over the last year, and 31.36% over the last six months. It closed 1.09% higher at $230.86 per share on Thursday, according to Benzinga Pro data. Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the long, short, and medium terms, with a solid growth score. Read Also: Nike Just Admitted Its China Problem Is About to Get Worse, With $230 Billion in Market Cap Already Gone — CEO Elliott Hill Warns the Pain Isn't Over Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock