Michael Burry Compares Nvidia to Cisco During Dot-Com Boom, Warns of Overhyped Demand on Sunday

On Sunday, investor Michael Burry, who has been shorting Nvidia since late last year, compared chipmaker Nvidia's trajectory to Cisco's boom-and-bust cycle during the dot-com bubble. Burry replied to CEO Jensen Huang's remarks about supply shortages with "Shades of John Chambers," referring to Cisco's former CEO. Chambers similarly cited overwhelming demand and supply constraints in the late 1990s, but when the bubble burst in 2000, Cisco's customers slashed spending or went bankrupt, and the stock fell over 80%. Burry suggests Huang's narrative mirrors this pattern and warns that supply-constrained booms can foster unsustainable expectations.

Burry continues to hold Nvidia puts "in good size," arguing much current demand is not from end customers. Nvidia stock rose 1.1% in Monday's overnight trading.