Michael Burry Says Nvidia Just Lost Its Enforcer: ‘The Don Has Fallen’

"The Don has fallen."

Michael Burry opened his latest Substack post with those four words, aimed at Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang. In Burry’s view, Huang’s downfall exposes the chipmaker’s sales tactics and financing web to serious risk, and he told shareholders to sell.

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Nvidia’s board is preparing to oust Huang after he had two extramarital affairs, including one with a suspected Chinese spy, the Wall Street Journal reported, citing people familiar with the matter. 

Huang acknowledged being unfaithful to his wife days earlier, and the board is investigating whether he was targeted by a foreign intelligence operation. 

Leadership and Antitrust

In a Wednesday Substack post, Burry argued Huang personally enforced Nvidia’s sales practices. He noted the Department of Justice was already investigating whether Nvidia abused its market dominance, including whether it required customers to buy GPUs alongside other products or charged more to buyers who did not use its GPUs.

"The coercion, it seems, came from the top," Burry wrote.

Citing Axios, he said Huang had as many as 60 direct reports and delegated little. Burry wrote CFO Colette Kress may serve as interim CEO but said he does not expect any successor to fill the role smoothly.

Circular Financing

Nvidia bought $42.4 billion of equity securities in the first half of 2026, according to Burry, who estimates the figure at roughly 30 cents of every revenue dollar reinvested in the AI buildout.

He also cited third-party financing platforms involving Apollo, BlackRock, Blackstone, KKR, Brookfield, Morgan Stanley and Goldman Sachs.Those platforms fund GPU purchases for cloud providers through off-balance-sheet special purpose vehicles. Burry said he has found leverage as high as 76x in the system.

He expects Nvidia’s board to pull back on risk, which could slow new investments and lead to write-offs.

Customer Relationships

Burry repeated his allegation that Nvidia pushed customers to buy chips they could not yet deploy, under threat of reduced future allocations. Many of those GPUs, he said, sit in warehouses as undepreciated construction in progress.

Without Huang, Burry argued, customers may delay orders, renegotiate terms or move to competitors. Any aggressive effort to hold them in place would raise antitrust concerns while the DOJ probe continues, he said.

Burry also pointed to congressional risk tied to Megaspeed’s GPU purchases shortly before new U.S. export controls took effect. 

Huang faces a potential congressional subpoena if he does not respond to a request to provide a closed-door briefing about allegations he had a close relationship with a Chinese businesswoman who passed information to Beijing, Reuters reported.

Outlook

Burry said Nvidia’s business will not disappear, though he expects growth to slow and margins to decline. He cited a mismatch between the pace of GPU product cycles and the time needed to finance and build data centers capable of housing new chips.

He expects strong results for the quarter Nvidia reports next week, since those sales are already booked. His recommendation to shareholders was to sell.

"NVIDIA bulls will have another fluffy big chance to get out. Get out," Burry wrote.

43 Nvidia stock was down 7.38% at $160.90 during premarket trading Thursday, according to data from Benzinga Pro.

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