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HomeNewsNvidia earnings: Burry warns of circular revenue as AI boom continues

Nvidia earnings: Burry warns of circular revenue as AI boom continues

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Nvidia (NVDA) is set to release its quarterly earnings after market close on Wednesday, August 26, 2026. Analysts expect record revenue of approximately $92 billion, driven by surging data center sales amid the ongoing AI wave. However, prominent investor Michael Burry, famed for predicting the 2008 housing crisis, has warned of a potential “circular revenue” bubble and disclosed short positions against the company.


Nvidia (NVDA) will release its quarterly earnings report after the market closes on Wednesday, August 26, 2026. The company has had a stellar year so far, rising on the ongoing AI wave.

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Analysts anticipate the company will deliver record revenue of about $92 billion, reflecting strong year-on-year growth. Data center sales are expected to be the primary driver, projected at $85.4 billion, up 107%.

Hyperscaler revenue is expected to reach $43.5 billion, while ACIE sales are projected at $41.7 billion. Adjusted earnings per share (EPS) for the second quarter is expected to hit $2.09.

The company is also expected to benefit from SpaceX deciding to build exclusively using Nvidia chips. Elon Musk stated after SpaceX’s earnings call that the company has decided to build solely on Nvidia, stating it offers “the best hardware to build on.”

Although Wall Street analysts remain bullish, Michael Burry is not convinced. Burry, who gained fame for predicting the 2008 housing crisis and was depicted in “The Big Short,” has been vocal against the AI boom.

He has compared the current scenario to the late 1990s dot com bubble. The analyst has revealed that he has taken short positions against Nvidia and other AI-based companies.

Nvidia CEO Jensen Huang has also addressed a potential AI bubble. Huang stated that while there may be a bubble, it may not affect the market for at least five years, adding that the challenge now lies “in building and creating.”

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