Nvidia Defends $4.5T Valuation Amid Criticism

Nvidia, currently the worlds most valuable company, is defending its $4.5 trillion valuation amidst skepticism from investors. The company has sent a detailed memo to stock analysts, rebutting claims made by Michael Burry and other critics. Burry, known for predicting the 2008 housing crisis, has recently increased his criticism of Nvidia, drawing significant attention from investors. The memo addresses concerns about inventory piling up and customers struggling to pay, as well as comparisons to past accounting frauds. Nvidia acknowledges lower profit margins and higher warranty costs for its newest chips due to their complex design. The companys shares dipped after a report suggested Meta Platforms was considering using Googles AI chips, which compete with Nvidias products. Nvidia publicly responded to this on X, sparking questions and criticism from users.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.