Huang Puts Nail in Burry's Bear Case: Nvidia Chips Last Longer Than Thought

Nvidia CEO Jensen Huang has responded to Michael Burry's bear case against the company.

Burry, founder of Scion Capital and a renowned hedge fund manager, had argued that Nvidia's graphics processing units (GPUs) have a shorter lifespan than estimated by the industry.

He believed these chips should be expensed over two to three years rather than six, as is currently done for accounting purposes. However, data from recent deals suggests otherwise.

Nvidia launched its Ampere A100 Tensor Core GPU in 2020, and despite being nine years old, it's still being used by companies like neocloud CoreWeave through 2029. Moreover, the rental price for these older chips is increasing, with a 22% month-over-month rise in prices.