Nvidia CEO Jensen Huang is pushing back against short sellers by citing robust GPU rental data and long-term service contracts to validate the enduring economic value of the company's AI hardware.
Jensen Huang's X posts highlight strong H100 rental demand and A100 longevity through 2029, directly countering Michael Burry's depreciation-driven short thesis.
Nvidia CEO Jensen Huang is countering short-seller claims that AI chip depreciation is being understated by cloud providers. By highlighting rising H100 rental rates and long-term A100 contracts extending through 2029, Huang aims to prove that Nvidia hardware remains a durable, revenue-generating asset. Critics like Michael Burry and Jim Chanos argue that rapid technological obsolescence makes current accounting models unsustainable.
Critics like Michael Burry argue that cloud companies are inflating profits by depreciating expensive AI chips over six years, while the rapid pace of innovation suggests a two-to-three-year economic lifespan.