I just came across an interesting analysis about Nvidia and its bubble. Michael Burry, the guy who predicted the housing market crash back in 2008, is raising the alarm again. And this time, the target is the chip giant.



The gist is this: Burry draws a parallel between Nvidia’s current situation and what happened to Cisco at the peak of the dot-com boom in 2000. Remember that story? Cisco was the most expensive company in the world, with a market capitalization of more than $500 billion, and then it lost more than 80% of its value. That’s how things went.

Right now, Nvidia is worth $4.5 trillion and is the largest company in the world. But Michael Burry sees red flags. He points to a sharp increase in Nvidia procurement obligations: from $16.1 billion a year ago to $95.2 billion by the end of the fourth quarter of 2025. The company is forced to place orders long before demand is known. That’s exactly what Cisco did before its crash.

Yesterday, Nvidia reported quarterly revenue of $68.1 billion, up 73% year over year. That sounds impressive, but the stock fell by more than 5%. Traders are disappointed. And that led to a drop across the entire segment: Bitcoin miners, who depend on AI companies’ equipment, also lost value.

Bitcoin is currently trading around 80.15K, up 0.73% over the day. NEAR is down 1.77%, RENDER is up 0.69%, Story Network (IP) is down 2.24%, FET is down 1.46%, VIRTUAL is up 1.14%, THETA is down 0.90%, and The Graph (GRT) is down 4.13%. Total crypto market capitalization is 2.4 trillion, down 2% for the day.

What’s interesting: Michael Burry previously already nailed the dot-com bubble. In 2005, he noticed problems in the housing market and made money from it. The 2015 film starring Christian Bale made him a legend. And now he says he sees the same signs of overvaluation with Nvidia.

This doesn’t mean everything will collapse tomorrow. But when an investor like this starts drawing parallels with historical bubbles, it’s worth paying attention. The AI market is hot, but hotter doesn’t mean healthier. It’s worth watching how this develops.
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