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The warning extends past present earnings to the long-term well being of corporate balance sheets. Burry contends that if these corporations used a realistic 2.5-year depreciation cycle for AI chips, their reported profitability would vanish. His estimate means that throughout the main hyperscalers, earnings are being overstated by an average of 24%.
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- He warned that “asset high quality is necessary in the long run,” noting that while a $50 billion write-off might seem small towards a $3 trillion market cap right now, “it will loom larger ought to it come to that.”
- The company has a strategic partnership with Lumentum Holdings Inc. to develop optics technologies for AI and information centers.
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