Michael Burry says sell Nvidia on Huang's exit

Huang resigns after affair reports

Nvidia CEO Jensen Huang resigned on Thursday morning following fresh reports about two alleged extramarital affairs. The board had been considering ousting him.

Burry warns of Nvidia collapse

Michael Burry, the Big Short investor, says Huang's exit will deal a heavy blow to Nvidia. He has been publicly betting against the company for many months.

Huang orchestrated AI ecosystem leverage

Burry wrote that Huang orchestrated Nvidia's AI ecosystem expansion through huge investments in AI stocks and special vehicles with hidden debt to finance customer chip purchases.

Customers will renegotiate without Huang

Without Huang, customers will be free to slow down deals, push back, renegotiate terms, or walk to a competitor without fear of offending the chip chief.

Growth and margins will fall

Burry said Nvidia's business will not disappear, but its growth may slow and critically its margins may fall. The financing architecture was the secret sauce that supercharged the company.

“Nvidia's business will not disappear, but its growth may slow and, critically, its margins may fall.”

Stock down 35 percent, Burry says exit

Nvidia stock plunged at the start of trading Thursday and has seen a near thirty-five percent drop from its two hundred forty-three dollar per share peak in early October. Burry urged investors to get out.

“Get out.”