Burry Expects 'Lights Out' Earnings from Nvidia Amid Concerns Over Circular Financing

Michael Burry, known for his role in The Big Short, expects Nvidia's (NVDA) Q2 earnings to be 'lights out' despite concerns over circular financing and excessive AI hype. The investor believes that roughly 100% of chipmakers' announced revenue is circular, citing the Bank for International Settlements.

Nvidia's revenue is expected to more than double from a year ago to $91.48 billion, with adjusted earnings rising to $2.07 per share. Earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to more than double to $61.83 billion.

Burry has maintained his bearish Nvidia positions throughout the year, despite expecting strong near-term results. He argues that a material spending reduction by even one major customer could significantly affect Nvidia's revenue.