Nvidia Chips Defy Depreciation Fears as Residual Value Holds Steady

Nvidia's six-year-old A100 chips continue to hold their value, contradicting a warning from Michael Burry that Big Tech may be overstating profits by depreciating AI hardware over five or six years. According to Silicon Data, the A100's residual value is estimated at $4,956, with its value remaining roughly flat near $5,000 since late 2025.

The high demand for older GPUs, such as those used in inference and fine-tuning workloads, can extend their economic life. CoreWeave Inc. has signed a customer contract for A100 GPUs extending through 2029, nearly a decade after the architecture debuted.

This challenges Burry's argument that companies are understating depreciation by stretching the useful lives of computing equipment. He estimated last year that hyperscalers could understate depreciation by roughly $176 billion between 2026 and 2028.