The Canadian Investor · Braden Dennis & Simon Belanger

Michael Burry Calls Out Nvidia and the AI Mania

November 27, 2025·54 min·5 clips

NVIDIA's unusual public response to Google's AI chips suggests hidden vulnerabilities in its market stronghold.

This episode of The Canadian Investor podcast, hosted by Simon Béranger and Dan Kent, analyzes recent corporate earnings and market trends, with a focus on Michael Burry's critique of AI infrastructure spending. The hosts begin by reviewing quarterly results for Alimentation Couche-Tard, noting its first strong quarter after several difficult years. They highlight that same-store merchandise sales grew by 1.2% in the U.S., 0.5% in Europe, and 5.2% in Canada, though they question whether U.S. sales are keeping pace with inflation. The company repurchased over a billion Canadian dollars worth of shares and expressed strong confidence in its future trajectory, partly driven by growth in tobacco-free nicotine pouches. The conversation shifts to Home Depot, which reported flat same-store sales and lowered its full-year guidance. The hosts attribute the sluggishness to high U.S. mortgage rates, low housing turnover, and constrained consumer spending, noting that average ticket growth of 1.8% was below inflation. They then dissect Nvidia's impressive earnings, where revenue grew 62% year-over-year to $57 billion, with data centers now comprising 90% of the business. Despite these results, the stock experienced volatility, which the hosts link to reports of Blackwell chip overheating and potential competition from Google's more energy-efficient Tensor Processing Units. Michael Burry, the investor famous for predicting the 2008 financial crisis, argues the current AI investment boom mirrors the dot-com bubble, with massive infrastructure spending destined to outstrip demand. He specifically compares Nvidia to Cisco during the internet build-out and suggests companies may be depreciating AI chips over unrealistically long periods, artificially boosting earnings. Burry also shares a chart indicating that when capital spending peaks relative to GDP, it often signals a market top. The episode maintains an analytical and conversational tone, blending earnings breakdowns with broader market commentary. Listeners interested in fundamental analysis of Canadian and U.S. stocks, or those weighing the sustainability of the AI investment theme, would find this episode valuable. Investors solely focused on growth narratives without scrutiny of risks or valuations might prefer to skip it.

As heard by us

A fast earnings episode with sharp Nvidia numbers, market tension, and a plainspoken read.

This episode moves between news and earnings, but the Nvidia segment is what sticks. The hosts make a clear case for how a company can beat expectations and still leave the market uneasy, with liquidity pressure, lofty expectations, and the latest noise around power use and…

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Why you'd press play

You want the numbers behind Nvidia's whiplash and a sane read on earnings season.

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