Nvidia's $95 Billion Purchase Commitments Spook Michael Burry

Nvidia's purchase commitments have surged to $95.2 billion at the end of the fourth quarter, up from $16.1 billion a year ago.

Michael Burry, known for his role in predicting the housing market bubble, has drawn parallels between Nvidia's actions and Cisco's supply commitments during the dot-com bubble.

Burry noted that Cisco secured large supply commitments in 2000-2001, resulting in excess inventory when demand tumbled. He warned that Nvidia may be committing to purchase large amounts of supply before knowing how strong future demand could be.

Nvidia's Chief Financial Officer Colette Kress stated that the company has strategically secured inventory and capacity to meet beyond the next several quarters.