NVDA
The AI trade just got its own debate club
Michael Burry and Steve Eisman — the two guys immortalized by The Big Short — are looking at Nvidia and seeing very different movies. Burry’s basically waving the red flag and calling Nvidia the new Cisco. Eisman, meanwhile, is over here saying, “Cool thesis. The company just grew revenue 85%.”
That’s the whole tension in one sentence: Nvidia’s latest quarter was strong enough to make the bear case feel early, but expensive enough to keep the skeptics circling like sharks in a CNBC green room.
Why bulls still have the wheel
The latest Q1 FY27 print gave Nvidia a few very shiny toys:
- revenue growth of 85%, which is not exactly “the engine is sputtering” territory
- an $80 billion buyback expansion, because apparently the company needed even more ways to flex
- a dividend bump to $0.25 per share
Add in the fact that Alphabet, Amazon, and Meta are still talking about north of $500 billion in 2026 AI capex commitments, and you can see why the market keeps treating Nvidia like the tollbooth on the only highway open in AI.
Burry’s bear case: same setup, different ending
Burry’s argument is classic “this looks amazing until it doesn’t.” He says the current demand wave is mostly training and benchmarking — the messy, hungry part of the AI buildout — and that a shift toward inference could mean fewer GPUs in the future. In other words: the party could keep going, but maybe the snack table gets smaller.
He’s not exactly nibbling either. By the end of 2025, Scion’s put-heavy portfolio was concentrated in Nvidia, Palantir, the iShares Semiconductor ETF, and Oracle. That’s not a casual hedge. That’s a full-send conviction trade.
The market says: prove it
For now, prediction markets are leaning Eisman’s way. Traders are putting only a modest chance on an AI bubble pop by the end of 2026, while still giving Nvidia a solid shot at finishing the year as the world’s largest company.
Big picture: Nvidia is still the centerpiece of the AI boom — and the more people argue about whether it’s a bubble, the more the stock keeps acting like the whole sector’s scoreboard.