{"id":509667,"date":"2026-03-02T15:34:17","date_gmt":"2026-03-02T15:34:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/509667\/"},"modified":"2026-03-02T15:34:17","modified_gmt":"2026-03-02T15:34:17","slug":"this-is-not-business-as-usual-this-is-risk","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/509667\/","title":{"rendered":"‘This Is Not Business as Usual. This Is Risk.’"},"content":{"rendered":"\n

Michael Burry on Thursday issued a warning regarding Nvidia Corp.’s (NASDAQ:<\/a>NVDA<\/a>) massive surge in purchase obligations, claiming the chipmaker is mirroring the structural risks that led to Cisco Systems Inc.\u2018s (NASDAQ:<\/a>CSCO<\/a>) collapse during the dot-com bubble<\/a>.<\/p>\n

In a recent Substack<\/a> newsletter, Burry highlighted a staggering shift in Nvidia’s latest Form 10-K filing. The company’s purchase obligations have skyrocketed to $95.2 billion, a massive leap from just $16.1 billion a year ago.<\/p>\n

When combined with other supply agreements, Nvidia’s total commitments now stand at approximately $117 billion.<\/p>\n

Burry argues that this isn\u2019t a reaction to external shocks but a fundamental, risky change in how the company operates. “This is not business as usual. This is risk,” Burry cautioned.<\/p>\n

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He noted that Nvidia is being forced to lock in long-term capacity with suppliers like TSMC before future demand is fully known. “This new reality reflects a deliberate decision to lock up supply chain capacity further than Nvidia has ever done before,” he wrote.<\/p>\n

The crux of Burry’s thesis lies in the haunting similarity to Cisco Systems in 2000. At the height of the internet boom<\/a>, Cisco aggressively committed to supply contracts to support its projected 50% annual growth.<\/p>\n

When tech spending plummeted, Cisco was left with billions in unusable inventory and saw its stock price crater by over 80%.<\/p>\n

While Nvidia’s current 70% profit margins offer a cushion Cisco didn\u2019t have, Burry remains skeptical of their longevity. “That type of margin would likely revert quickly with a shift in demand,” he warned, suggesting the current \u201cAI darling\u201d status provides no immunity to a cyclical downturn.<\/p>\n

See Also:\u00a0Blue-chip art has historically outpaced the S&P 500 since 1995, and fractional investing is now opening this institutional asset class to everyday investors.<\/a><\/p>\n

Not all of Wall Street shares Burry’s pessimism. Analysts at Rosenblatt Securities recently raised their price target for Nvidia to $300, viewing the aggressive inventory securing as a sign of management\u2019s confidence in the next generation of AI platforms.<\/p>\n

However, Burry insists the shift is structural and permanent: “What is happening now is not temporary\u2026 This is coming from within the business plan.”<\/p>\n","protected":false},"excerpt":{"rendered":"Michael Burry on Thursday issued a warning regarding Nvidia Corp.’s (NASDAQ:NVDA) massive surge in purchase obligations, claiming the…\n","protected":false},"author":2,"featured_media":509668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,94128,127175,6494],"class_list":{"0":"post-509667","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-cisco-systems","12":"tag-michael-burry","13":"tag-nvidia"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/509667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=509667"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/509667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/509668"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=509667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=509667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=509667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}