Chit Chat Stocks Michael Burry v. NVIDIA; Thanksgiving Turkey Stocks; Is It Time To Sell Alphabet? $GOOG $NVDA
Nov 28, 2025
Michael Burry raises concerns about Nvidia's sustainability amid GPU depreciation risks. The hosts debate if his short thesis is justified. Alphabet is booming with its AI strategy, while Amazon's logistics ‘moat’ secures its e-commerce dominance. Thanksgiving brings a reflection on legacy companies possibly facing doom. They highlight attractive stocks like Mercado Libre, while also covering potential Black Friday disappointments. Overall, it's a mix of market analysis, economic concerns, and investment gratitude.
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AI CapEx Echoes Dot‑Com Infrastructure Excess
- Michael Burry compares today's AI CapEx boom to the dot‑com / telecom buildout excess and warns of structural oversupply risk.
- He argues GPU useful life assumptions may mask overstated durable earnings across hyperscalers.
Depreciation Schedules Drive Market Fragility
- Depreciation policy on GPUs/TPUs is central because longer useful lives boost current margins and ROIC.
- If upgrade cycles shorten, earnings and cash flows across the AI value chain could collapse.
Private Rebuttals Can Signal Fragility
- NVIDIA's private memo to analysts to rebut Burry made the debate feel fragile and secretive to public investors.
- Brett and Ryan see that selective communication undermines confidence more than the critique itself.