Michael Burry sends a stark warning to Big Tech stock investors

This is not the first time Burry has raised concerns about how that spending gets accounted for. He has argued that hyperscalers are extending the useful life of Nvidia chips well beyond their realistic two to three year replacement cycle. He estimates that move could understate industry-wide depreciation by roughly $176 billion between 2026 and 2028, according to TheStreet.

The earnings impact of that accounting choice, in Burry’s view, would not be evenly spread. He has estimated Oracle’s earnings could end up overstated by roughly 26.9% and Meta’s by about 20.8% by 2028, if the depreciation assumptions behind current reporting hold up.

How Big Tech and Wall Street are responding

Nvidia sent a seven-page memo to Wall Street analysts and named Burry directly. Four to six years is the real GPU depreciation window, it said. The 2020 A100 is still running. Still getting paid for. Two to three years, Nvidia argued, is not the cycle.

Nvidia also disputed one of Burry’s specific figures, stating it has repurchased $91 billion worth of shares since 2018 rather than the $112.5 billion Burry cited, arguing he had incorrectly included taxes on restricted stock units in his calculation, TheStreet reported.

Micron’s chief business officer told investors on a recent earnings call that customer demand for memory chips remains well above the company’s ability to supply across nearly every product category through 2028. That runs directly counter to the idea that current AI demand reflects speculation rather than genuine need.

Burry has continued building short positions that reflect his broader thesis, including bets against Oracle, Nebius, Micron and Palantir. Most of those stocks posted gains through August. That creates a clear test of his timing as the AI trade keeps rallying.

What it means for investors

Burry’s argument rests on a specific historical pattern. He has pointed to the late 1990s technology, media and telecommunications boom. After that cycle ended, depreciation and write-downs pushed aggregate S&P 500 net investment below zero for 12 consecutive quarters between mid-2003 and mid-2006.

That history is why Burry considers 2027 through 2029 the critical window. That is when he expects the accounting to catch up with the spending. It also underpins his leveraged short on the Philadelphia Semiconductor Index through January 2027 put options.

The disagreement between Burry and the companies he is targeting is unlikely to resolve quickly. Nvidia’s public rebuttal, Micron’s supply-demand data and continued capacity expansion from chipmakers like Taiwan Semiconductor all suggest the market still sees real demand behind the spending.

Burry disagrees. He keeps building the case that a reckoning is coming once the accounting catches up with reality.

Related: Michael Burry’s blistering message on economic inequality

This story was originally published by TheStreet on Sep 27, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.