“Big Short” investor Michael Burry has found an ally in Peter Andersen, CIO of Andersen Capital Management. The expert investor revealed on the Schwab Network that he completely exited his stake in Nvidia Corp. (NASDAQ:NVDA) last summer—months before the current wave of bearish scrutiny—precisely because he foresaw the “accounting questions” now dominating headlines.
Check out NVDA's stock price here.
Peter Andersen Dumps Nvidia Before Anyone Else
Andersen told Schwab Network that the current accusations surrounding Nvidia’s financial structures were inevitable.
“I sold all our NVIDIA shares way back in the summer,” Andersen stated, explaining he anticipated “that some of this stuff would actually come into focus.”
He noted that today’s specific accounting concerns are just the “tip of the criticism” the company should face.
His exit effectively front-ran recent high-profile attacks by Burry, who has shorted the stock and criticized Nvidia's buyback strategies and compared the current AI frenzy to the dot-com bubble. The mounting pressure recently forced Nvidia to issue a private memo to analysts explicitly denying comparisons to historical accounting frauds like Enron.
AI's Promise to Replace Human Thought A ‘Fantasy’
Beyond the financials, Andersen's skepticism stems from a fundamental disbelief in the core narrative driving the stock's valuation. He argued that the “idealistic model” suggesting AI will soon replicate human thought is a dangerous delusion.
“I just think that it is so wrong, so far-fetched,” Andersen said regarding the idea of replacing the human brain. “But yet people are moving on with that fantasy.”
See Also: Nvidia Q3: Record Revenue As Blackwell Demand Surges — Huang Says ‘AI Is Going Everywhere’
The AI Demand Debate
Andersen warned of massive “overbuilding” in data center infrastructure without corresponding real-world demand.
He questioned the existence of viable business plans for all this new capacity, noting that flagship tools like ChatGPT are not “locking up” from overuse—a symptom he argues would be present if genuine user demand was actually outstripping supply.
However, chief market strategist at Futurum Equities, Shay Boloor, shared a thesis that the AI cycle differs from the dotcom bubble since the GPU utilization was as high as 80% of the total capacity, as compared to the utilization of fiber optics in 1999.
NVDA Outperforms Market In 2025
While NVDA shares have risen 30.33% year-to-date, the Nasdaq 100 index has returned 20.32% in the same period. Over the year, Nvidia has gained only 33.19%. On Wednesday, the stock rose 1.37% to $180.26 apiece.
It maintains a stronger price trend over the long term but a weak trend in the short and medium terms, with a poor value ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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