By MERLION$ | Merlion Finance

Nvidia has officially reached mythical creature status in financial markets.
Every AI company wants their chips. Every cloud provider wants bulk orders. Every startup wants GPU clusters before they even know what product they’re building.

But amidst all the hype and mind-bending valuations…
One man just flipped the narrative on its head:

👀 Michael Burry – yes, that Burry – is shorting Nvidia.

Depending on who you ask, Nvidia is either:
• 🚀 the backbone of the next 20 years of AI, or
• 💣 the most overpriced speculative bubble since 1999.

Let’s unpack what’s real, what’s noise, and what you – as a thinking retail investor – should watch out for.

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🔥 The AI Mega-Deals Everyone Is Talking About

Nvidia has been dropping blockbuster announcements:

• Oracle reportedly planning tens of billions in Nvidia chip purchases
• Nvidia committing up to $100B to OpenAI’s future infrastructure
• OpenAI signing a 10 GW GPU deployment LOI
• Hyperscalers racing to lock in GPU supply years ahead

On paper?
It looks like unstoppable, exponential demand.

But some analysts are whispering something more cynical:
“Is this just circular money being passed around?”

Here’s the idea:
Nvidia sells chips → Nvidia invests back into AI partner →
AI partner uses capital to buy more Nvidia chips →
Nvidia books revenue →
Repeat.

It’s not fake…
But it raises questions about how sustainable the growth really is.

This is a key part of Burry’s bearish stance.

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⚠️ Why Michael Burry Is Betting Against NVDA

Burry’s reasoning is surprisingly simple – and hard to ignore.

1️⃣ Valuation is “priced for perfection”

Nvidia’s stock price assumes no mistakes, ever.
Not in margins, not in demand forecasts, not in supply chain.

Anything less than perfect = instant correction.

2️⃣ GPU hardware becomes obsolete fast

AI chips have very short useful lives.
But some hyperscalers extend depreciation timelines to make earnings look prettier.
Burry believes this creates artificially inflated profits.

3️⃣ “Mega deals” may inflate optics without ensuring real profits

Circular financing inside the AI ecosystem can boost revenues…
But long-term profitability is still largely unproven.

He’s not saying Nvidia is a bad company.
He’s saying Nvidia is a fantastic company with a dangerously inflated price tag.

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🟦 But the Bull Case is Still Absolutely Monster

Let’s be honest – bears can scream, but Nvidia still dominates everything that matters:

• #1 in AI GPUs
• #1 in CUDA software ecosystem
• #1 in developer mindshare
• #1 in AI research compatibility
• #1 in cloud & hyperscaler demand

If the AI revolution keeps accelerating, Nvidia profits massively.
If the AI revolution slows down, Nvidia still wins – just less explosively.

This is why bulls refuse to short it:
You don’t bet against the company selling shovels during a gold rush.

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📊 WordPress-Friendly Table Breakdown

Nvidia: Bull vs Bear Breakdown

Category	Bull Case 🚀	Bear Case 💣
Valuation	Future AI dominance justifies premium	Bubble territory; too much optimism priced in
Partnerships	OpenAI, Oracle, hyperscalers = huge demand	Some deals financially circular, not organic
Tech Moat	Unmatched GPU tech + CUDA lock-in	Rapid obsolescence, competitors catching up
Revenue Growth	Data center demand surging	Any slowdown nukes guidance
Market Sentiment	Market loves AI plays	Sentiment can flip instantly

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🧠 The Real Question: Is This Growth Real or Hype-Inflated?

This is the heart of the whole debate.

Nvidia doesn’t need a scandal to tank.
It only needs:

• slower hyperscaler spending
• OpenAI deployment delays
• energy / power infrastructure bottlenecks
• lower-than-expected margins
• modestly weaker guidance

When a stock is priced as if the next 10 years are guaranteed…
Even a “good but not insane” quarter can cause a huge correction.

This is why Nvidia is both a dream and a hazard.

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🟧 Merlion Finance View (for SG retail investors)

Here’s our brutally honest take:

Nvidia is still the king.
But kings fall the hardest when expectations collapse.

If you’re thinking of entering NVDA now, remember:

✔ You’re buying into peak AI hype
✔ You’re betting every mega-deal delivers
✔ You’re assuming execution stays flawless
✔ You’re assuming no macro slowdown hits tech capex

These are strong assumptions.

Not wrong – but risky.

The play is simple:
Be patient.
Wait for pullbacks.
Don’t FOMO into peak valuation candles.

AI is the future, yes.
But hype cycles have destroyed more portfolios than recessions.

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🐉 Final Verdict

Nvidia will either become the most valuable company in history…
or the most painful bubble lesson of this decade.

Both outcomes are possible.

Be smart.
Be slow.
Be unemotional.

Stay rational, ask smart, and as always –
🦁 Stay ballin’. – MERLION$ | MerlionFinance.com