NVDA, AVGO’s AI Backstops Have One Analyst Worried — Michael Burry Says There’s A Reason Nvidia’s 5Y CDS Are Going ‘Parabolic’

A Wolfe Research analyst expresses concern about Nvidia and Broadcom's strategy of backstopping financing for key AI customers, viewing it as a new source of long-term risk. Meanwhile, Michael Burry highlighted the "parabolic" rise in Nvidia's credit default swaps, attributing it to the company's "circular spending." Despite these concerns, another tech strategist anticipates continued significant AI capital expenditures, shifting focus to companies demonstrating returns from these investments.