Of late, Micheal Burry has been skeptical on the developments in the technology sector. Recently, Burry disclosed short positions in Oracle (ORCL) and Nebius Group (NBIS) citing "rising leverage risks linked to off-balance-sheet commitments across the technology and cloud sectors." Further, Burry also critiqued Nvidia Corporation's (NVDA) $500 billion infrastructure financing deal and "complex web of private credit and asset-backed securities" that preceded the financial crisis of 2008-09. A $210 Billion Reason to Buy AMD Stock Here CoreWeave vs Nebius: Both Companies Reported Strong Earnings, But Here's the Stock You Should Buy As Oracle Deepens Its Partnership with AWS, Here's How You Should Play ORCL Stock Tired of missing midday reversals?
The FREE Barchart Brief newsletter keeps you in the know. Under this deal, the likes of Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BN), Goldman Sachs (GS), and KKR & Co. (KKR), will be mobilizing over "$500 billion of third-party capital for the buildout of AI infrastructure over time." This financing platform will help customers "access scarce compute at scale and build the DSX AI factories" and Nvidia will be acting as a marketplace. This move is likely to provide incremental capital infusion into the full-stack AI infrastructure.
Amidst the criticism of this deal, an important point to note is that the current AI boom is different from the dotcom bubble. As Goldman Sachs points out, "corporate profit margins have climbed rather than eroded." Further, AI infrastructure spending is significant, but the technology sector has robust cash flows and a strong balance sheet. Nvidia, as a full-stack AI infrastructure company, is therefore well positioned to grow and create value.
Headquartered in Santa Clara, Nvidia is a technology giant and commands a market valuation of $5.423 trillion. The company describes itself as a global leader in accelerated computing and AI. The company's business is divided into two segments: Compute & Networking segment and Graphics segment.
Within the compute & networking segment, the key growth driver includes data center accelerated computing, networking platforms, and AI solutions and software. Nvidia has been on a high-growth trajectory and for FY26, revenue growth was 65% year-over-year (YOY) to $215.9 billion. Further, for FY26, the company reported robust operating cash flow of $102.7 billion.
With the company's technology powering the world's AI infrastructure, innovation is the factor that gives Nvidia an edge. The company has more than 9,800 granted patents globally. Backed by strong growth and cash flow upside, Nvidia stock has trended higher by 23.36% in the last six months.
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