Nvidia Is Involved in "One of the More Common Frauds of the Modern Era," Says the Legendary Investor Who Predicted the 2008 Housing Crisis

Michael Burry -- the famous investor who bet against the housing market before the 2008 crash, a contrarian move that ultimately inspired the Hollywood blockbuster The Big Short -- is not a fan of Nvidia (NASDAQ: NVDA) stock right now. Importantly, Burry isn't oblivious to the massive growth in artificial intelligence technologies, or of Nvidia's dominant market share for AI GPUs.Instead, Burry's bearish position revolves around his belief that many AI businesses are participating in "one of the more common frauds of the modern era." When investors think about fraud, images of dramatic scams or heists may come to mind. However, fraud is often simply a matter of accounting. Consider Enron -- perhaps the most well-known fraud of the early 2000s. The root of this fraud involved the use of off-balance-sheet entities and deceptive financial reporting to conceal massive debt and inflate profits. In short, it was a numbers game, a fraud that played out mostly on paper. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool