Michael Burry Says Nvidia Spent $112.5 Billion On Buybacks Adding 'Zero' Shareholder Value — 'The True Cost...'

• StockStory Top Pick NVDA -0.97%
• TSLA -1.00% ^IXIC +0.88% ^NDX +0.77% GC=F +0.48%

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Famed “Big Short,” investor Michael Burry, known for his prescient bet against the housing market, has publicly questioned Nvidia Corp.‘s (NASDAQ:NVDA) capital allocation strategy, asserting that the tech giant’s $112.5 billion spent on stock buybacks since 2018 has effectively yielded “zero” additional shareholder value.

Nvidia's Massive Buybacks Added Zero Shareholder Value

In an X post, Burry dissected Nvidia’s financial data, highlighting a disconnect between aggressive share repurchases and the company’s rising share count. Burry’s analysis points to Nvidia’s $20.5 billion in Stock-Based Compensation (SBC) since 2018.

While the company reported a robust $205 billion in net income and $188 billion in free cash flow over the same period, Burry argues that the $112.5 billion dedicated to buybacks primarily served to offset stock-based compensation (SBC)-related dilution.

Don’t Miss: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

“But it bought back $112.5B worth of stock and there are 47 million MORE shares outstanding,” Burry tweeted, adding, “The true cost of that SBC dilution was $112.5B, reducing owner's earnings by 50%.”

He suggests that the company's expenditures on buybacks were merely a defensive maneuver against dilution rather than a genuine reduction in outstanding shares.

This, he contends, fundamentally distorts the “owner’s earnings” perspective, presenting a less favorable picture for long-term investors.

NVDA Delivers Blockbuster Q3 Earnings

This critique comes amidst Nvidia’s continued market dominance and soaring stock price, largely fueled by its pivotal role in the AI revolution. Nvidia’s recent third-quarter results demonstrated record revenue of $57 billion, up 62% year-over-year, with CEO Jensen Huang proclaiming, “AI is going everywhere.”

The company’s earnings call highlighted overwhelming demand for its Blackwell and Rubin GPUs, with projections of $500 billion in revenue from these architectures by the end of calendar year 2026.

See Also: Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse — Invest Now at Just $0.86 a Share

Nvidia's CFO, Colette Kress, addressed capital allocation in the recent earnings call, emphasizing the need for a strong balance sheet to fund growth and secure supply chains.

CEO Huang also noted plans for continued stock buybacks and strategic ecosystem investments, such as those with OpenAI and Anthropic, to expand the reach of Nvidia’s CUDA platform.

Nvidia Outperforms Nasdaq In 2025

Nvidia shares have outpaced the broader market this year, climbing 34.86% year-to-date compared to returns of 17.03% for the Nasdaq Composite and 17.47% for the Nasdaq 100.

On Wednesday, the stock finished the regular session up 2.85% at $186.52 before surging another 5.08% in extended trading. Over the last year, the stock has gained 27.85%.

It maintained a stronger price trend over the medium and long terms and a weak trend in the short term, with a poor value ranking. Additional performance details, as per Benzinga Edge's Stock Rankings is available here.

Photo courtesy: Chung Hao Lee / Shutterstock

Trending Now:

• Wall Street's $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen

• Deloitte's #1 Fastest-Growing Software Company Lets Users Earn Money Just by Scrolling — Accredited Investors Can Still Get In at $0.50/Share.

Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Worthy Bonds

For those seeking fixed-income style returns without Wall Street complexity, Worthy Property Bonds offers SEC-qualified, interest-bearing bonds starting at just $10. Investors earn a fixed 7% annual return, with funds deployed to small U.S. businesses. The bonds are fully liquid, meaning you can cash out anytime, making them attractive for conservative investors looking for steady, passive income.

IRA Financial

Self-directed investors looking to take greater control of their retirement savings may consider IRA Financial. The platform enables you to use a self-directed IRA or Solo 401(k) to invest in alternative assets such as real estate, private equity, or even crypto. This flexibility empowers retirement savers to go beyond traditional stocks and bonds, building diversified portfolios that align with their long-term wealth strategies.

Moomoo Idle Cash

Moomoo isn't just for trading — it's also one of the most attractive places to park cash. New users can earn a promotional 8.1% APY on uninvested cash, combining a 3.85% base rate with a 4.25% booster once activated. On top of that, eligible new users can also score up to $1,000 in free Nvidia stock—but the real draw here is the ability to earn bank-beating interest rates without having to move into riskier assets.

American Hartford Gold

For investors concerned about inflation or seeking portfolio protection, American Hartford Gold provides a simple way to buy and hold physical gold and silver within an IRA or direct delivery. With a minimum investment of $10,000, the platform caters to those looking to preserve wealth through precious metals while maintaining the option to diversify retirement accounts. It's a favored choice for conservative investors who want tangible assets that historically hold value during uncertain markets.

This article Michael Burry Says Nvidia Spent $112.5 Billion On Buybacks Adding 'Zero' Shareholder Value — 'The True Cost...' originally appeared on Benzinga.com

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.