Burry Compares Nvidia Bubble to 1960s Computer Leasing Frenzy

Famed investor Michael Burry has compared the current enthusiasm for Nvidia's GPU valuations to the speculative bubble of the 1960s computer leasing market.

Burry pointed out that a recent Nvidia investor presentation included a chart showing that companies are over-depreciating their chip investments, similar to how computers were written off in the 1960s.

In his analysis, Burry drew parallels between the two markets by referencing a 1968 book titled 'The Money Game,' which described how traders justified their investments in computer leasing stocks by claiming the need for computers was practically infinite and that concerns about high earnings multiples were outdated.

Burry suggested that today's AI market relies on similar flawed justifications, with investors relying on the idea of 'this time is different' to ignore depreciation concerns.