In the grand theater of finance, where fortunes rise and fall like the tides, one might find themselves chuckling at the spectacle of Nvidia’s quarterly triumphs. A sum of $57 billion in revenue, a figure so astronomical it could make a banker weep, yet the stock waltzed up 5%, only to retreat as swiftly as a moth drawn to flame. The market, that fickle mistress, whispers: Is this AI crescendo merely a symphony of smoke and mirrors? 🐝🔥
The first act unfolds with a dissonance between numbers and reality. Nvidia’s unpaid customer bills, a veritable cornucopia of $33.4 billion, have grown like ivy on a crumbling wall. Customers now take 53 days to settle their debts, a delay that would make a patient saint twitch. Meanwhile, the company hoards $19.8 billion of unsold chips, claiming demand is “through the roof” while the roof itself is nailed shut. 😂💰
“Both cannot be true…Either customers aren’t buying or they’re buying without cash. The cash flow tells the real story,” said Shanaka Perera, a man whose sarcasm could cut through steel. 🛠️
The second act reveals a chasm between profit and liquidity. While Nvidia boasts $19.3 billion in profit, only $14.5 billion graces its bank accounts. The missing $4.8 billion? Perhaps it’s hiding in plain sight, like a ghost at a séance. Contrast this with TSMC and AMD, whose profits materialize in cash with the reliability of a clockwork orange. 🕰️🍊
“Healthy chip companies like TSMC and AMD convert over 95% of profits to cash. Nvidia converts 75%. That’s distress level,” Perera added, as if diagnosing a patient with a rare fiscal disease. 🦠
The final act spirals into a web of intercompany loans and circular logic. Nvidia sells chips to firms like xAI and Microsoft, who fund these deals with borrowed money, creating a financial ouroboros. The same funds are counted multiple times, a parlor trick that would make Houdini blush. 🎩🎩
Michael Burry’s Ode to the AI Bubble
Michael Burry, that modern-day Cassandra, scowls at the chaos: “The actual end demand is ridiculously small. Almost all customers are funded by their… well, their own delusions.” He also notes that Nvidia’s stock buybacks, a $112.5 billion splurge since 2018, may be a smokescreen for dilution. And let’s not forget the energy-guzzling GPUs-profitable? Perhaps, but only if you charge by the kWh. 💡💸
Every company listed below has suspicious revenue recognition. The future will regard this a picture of fraud, not a flywheel. True end demand is ridiculously small. Almost all customers are funded by their…
– Cassandra Unchained (@michaeljburry) November 19, 2025
Peter Thiel, once a Nvidia shareholder, cashed out, declaring the stock a “bubble.” SoftBank joined the exodus, selling $5.8 billion worth. Burry, ever the contrarian, bets Nvidia will crash to $140 by March 2026. The crowd’s reaction? A shrug. After all, what’s a 15% stake in the US GDP between friends? 🤝
Peter Thiel reportedly sold his entire position of 537,742 shares in Nivdia.
Why? It’s a bubble, they all know it & are cashing out.
– Nvidia ALONE = 15% of US GDP.
-OpenAi wants a govt bailout.
– US Growth is .01% when you remove AI sector.– Maine (@TheMaineWonk) November 17, 2025
The denouement? Bitcoin, that digital albatross, has plummeted 30% since October, partly due to AI startups’ Bitcoin collateral. Should Nvidia stumble, the collateral may be liquidated, a domino effect worthy of a tragic opera. 🎭📉
Nvidia, $NVDA, CEO Jensen Huang told staff ‘the whole world would’ve fallen apart’ if Nvidia delivered a bad quarter, per BI
– unusual_whales (@unusual_whales) November 21, 2025
Yet hope persists! Supporters argue Nvidia’s $23.8 billion cash flow and orders from Microsoft and Meta are proof of resilience. But a Bank of America survey reveals 45% of fund managers see AI as a bubble risk. The IMF and Bank of England agree, adding regulatory drama to the mix. 🧵
The final curtain falls in February 2026, when Q4 results will either validate the hype or shatter it. Will the AI boom continue, or will this be the day the music stopped? Only time will tell, but in the world of finance, every ending is just the beginning of another farce. 🎭🎭
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2025-11-21 19:08