“The Big Short” investor Michael Burry expects Nvidia to deliver another blockbuster quarter on Wednesday, but that has not stopped him from betting against NVDA stock.
Nvidia is scheduled to report fiscal second-quarter 2027 results after the closing bell on Aug. 26. Wall Street expects roughly $92 billion in revenue and adjusted earnings of about $2.09 per share, nearly double year-earlier levels. Nvidia itself guided for $91 billion in revenue, plus or minus 2%, while assuming no Data Center compute revenue from China.
Burry, however, believes a strong print could actually reinforce the market enthusiasm he views as excessive. Asked about the report on Substack, he said the results would be “lights out,” but argued the accompanying hype could signal that fear of missing out has already pulled most potential buyers into the stock.
Nvidia stock price over the past month (Source: Google Finance)
NVDA has climbed about 7% in August through Friday’s close, rising from $200.75 at the end of July to $214.72 on Aug. 21.
Burry Targets the Financial Foundations of the AI Boom
Burry’s bearish case is less about near-term chip demand and more about the financial structure supporting the AI boom. He has repeatedly warned that chipmakers, hyperscalers and AI companies are investing in or financing one another, which could potentially make underlying demand appear more independent than it really is.
The Bank for International Settlements also warned in its 2026 Annual Economic Report that circular financing has become widespread, with chipmakers and hyperscalers investing in AI labs or cloud providers that then commit to purchasing chips or computing capacity.
Nvidia’s expanding role in financing the AI ecosystem adds another dimension. Reuters reported in August that Nvidia could provide up to $105 billion in guarantees tied to OpenAI’s planned Ohio data center. Nvidia also invested $2 billion in GPU cloud provider CoreWeave earlier this year.
Burry is also focused on customer concentration. Nvidia disclosed that its three largest direct customers represented 21%, 17% and 16% of first-quarter revenue, respectively. This means that three customers accounted for 54% of total revenue.
For bulls, however, demand remains enormous. Data Center revenue hit a record $75.2 billion last quarter, up 92% year over year, while Blackwell continues to ramp and Nvidia prepares its next-generation Vera Rubin platform.
Wednesday’s report, therefore, is about more than another Nvidia earnings beat. Investors will be watching guidance, margins, customer spending and AI financing for signs that the boom is still accelerating.
