Nvidia Defends AI Investments in Memo Addressing Michael Burry's Bubble Concerns – Wednesday, November 26, 2025

Nvidia has issued an internal memo defending its AI investments against claims of an impending bubble, following analysis by Michael Burry. Burry, renowned for predicting the 2008 financial crisis, has expressed concerns about the sustainability of current AI valuations.

Who should care: CFOs, fintech product leaders, payments executives, risk & compliance teams, and financial services technology decision-makers.

What happened?

Nvidia has taken a proactive approach to address growing concerns about a potential AI investment bubble, concerns recently highlighted by Michael Burry. Burry, a well-known figure in financial circles for his accurate prediction of the 2008 financial crisis, has warned that the current AI market appears overvalued and may be vulnerable to a significant correction. In response, Nvidia circulated an internal memo aimed at reassuring stakeholders about the strength and long-term viability of its AI initiatives. The memo stresses that Nvidia’s AI investments are rooted in strategic growth and ongoing innovation, directly countering Burry’s claims of unsustainable valuations. This response comes amid a broader market environment where AI stocks have experienced rapid appreciation, attracting heightened scrutiny from investors and analysts. Nvidia’s memo seeks to maintain investor confidence and ensure that its strategic direction in AI remains clear and credible, despite skepticism surrounding current valuation levels. The company underscores its commitment to AI through continued development of cutting-edge technologies and expansion into new markets, signaling confidence in the sector’s enduring potential. By addressing these concerns head-on, Nvidia aims to separate its long-term vision from short-term market volatility and speculative fears.

Why now?

The timing of Nvidia’s response is significant, coinciding with intensified market scrutiny over AI valuations driven by rapid technological advancements and substantial capital inflows over the past 18 months. During this period, companies like Nvidia have been at the forefront, benefiting from surging demand for AI-driven solutions across multiple industries. However, this accelerated growth has also sparked concerns about overvaluation and the risk of a market correction. Michael Burry’s recent analysis has brought these concerns into sharper focus, prompting Nvidia and others to defend their strategic positions and reassure stakeholders about the long-term value of their AI investments.

So what?

The ongoing debate around AI valuations carries important implications for the fintech and broader financial services sectors, which increasingly depend on AI technologies to drive innovation and maintain competitive advantage. A potential market correction could affect funding availability and investment strategies, potentially slowing the pace of technological progress. Organizations must navigate these uncertainties by balancing aggressive innovation with prudent financial oversight to sustain growth.

What this means for you:

• For CFOs: Assess the risk exposure of AI investments carefully and consider diversifying portfolios to mitigate the impact of potential market corrections.
• For fintech product leaders: Prioritize the development of AI products that demonstrate clear, measurable value to withstand investor scrutiny and justify valuations.
• For risk & compliance teams: Strengthen monitoring of AI-related investments to identify and manage risks associated with market volatility effectively.

Quick Hits

• Impact / Risk: The debate raises the possibility of a shift in investor sentiment, which could trigger a reevaluation of AI stock valuations.
• Operational Implication: Companies may need to recalibrate their strategic focus to ensure sustainable growth amid potential market corrections.
• Action This Week: Review AI investment portfolios for exposure to high-risk valuations and update executive teams on potential market impacts.