Michael Burry has issued a warning that the rapid growth in AI data centers is fueled by complex financial arrangements like circular financing and off-balance-sheet vehicles, which obscure true leverage and risk, similar to the 2008 financial crisis. He highlights companies like NVIDIA, Oracle, and Nebius Group, noting that much of their future revenue is backed by these opaque financing methods rather than organic demand. This raises concerns about the sustainability of the AI investment boom, especially as data-center construction continues despite rising interest rates. Investors should watch how these financial obligations convert to cash flow and be cautious about the high valuations in AI infrastructure stocks.
Microsoft closed fiscal 2026 with Azure surpassing $100 billion in revenue and Microsoft 365 Copilot exceeding 30 million paid seats, signaling strong AI monetization through software contracts and consumption. NVIDIA posted $81.6 billion in revenue,...
Nvidia and Oracle stocks have continued to rally even as credit default swap spreads, which indicate rising credit risk, have sharply widened. This divergence is unusual since widening credit spreads typically signal higher risk and lead to falling s...
AMD reported record revenue of $11.54 billion, driven by a 107% year-over-year increase in Data Center revenue to $6.72 billion, fueled by strong demand for EPYC server chips and MI450 GPUs in the new Helios rack. Meanwhile, NVIDIA posted an $82 bill...
SpaceX's decision to build its AI infrastructure on NVIDIA's Vera Rubin platform, claiming 20% of NVIDIA's next-gen capacity, signals NVIDIA's advantage in allocation control rather than AMD's decline. Despite losing SpaceX, AMD reported strong Q2 re...
Venture investor Chamath Palihapitiya claimed that the largest companies' earnings growth has "literally zero" connection to AI, contrasting sharply with Nvidia and Microsoft's recent financial results. Nvidia's stock has surged 945% over five years,...
