Nvidia (NASDAQ:NVDA) recently found itself in the unusual position of distributing a defensive seven-page rebuttal to Wall Street analysts, directly countering accusations of Enron-style accounting. The document, obtained by outlets like Barron’s and Business Insider, dismisses claims of hidden debt, inflated revenue through special purpose vehicles, and vendor financing schemes akin to those that sank Enron, WorldCom, and Lucent in the early 2000s.
Though it doesn’t name him outright, the memo clearly targets Michael Burry, the “Big Short” investor famous for spotting the 2008 housing crash.
On his new Substack, “Cassandra Unchained,” Burry clarifies he’s not labeling Nvidia an outright fraud like Enron. Instead, he positions it as the modern equivalent of Cisco Systems (NASDAQ:CSCO), the networking giant that epitomized the dot-com boom’s excess before its bust.
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