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What Is Depreciation? Are Nvidia and Hyperscaler Investors In Trouble?
Michael Burry, the investor made famous by The Big Short, is warning of a major risk in the AI data center boom. He claims hyperscalers like Meta are understating depreciation to artificially inflate GAAP earnings.<br>We dive into this controversial argument, explaining exactly what depreciation is and how extending the useful life of assets (like NVIDIA's GPU-based servers) impacts a company's financial reports.<br>But here's the real question for investors: Is depreciation the biggest threat, or should we be focusing on the massive Capital Expenditures (CapEx) already spent? We break down…
The skinny
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