NVIDIA launches a market capitalization defense, attacking short positions through a memorandum.

According to a report from Jin10 on November 27, 2023, NVIDIA, the company with the highest market capitalization globally, has launched an information campaign on Wall Street and social media to defend itself against those skeptical of its $4.5 trillion valuation (which has fallen from a historical high of $5 trillion). Last week, the company sent a detailed memo to sell-side equity analysts, countering point by point the accusations made by Michael Burry, the prototype character from the movie “The Big Short,” and other authors who have written on Substack. Burry gained fame for shorting the U.S. housing market before the 2008 financial crisis, and in recent weeks, he has intensified his criticism of NVIDIA in a new article. This memo was released by research firm Bernstein. The day before Bernstein released the memo, the tech publication “The Information” reported that Meta Platforms was in discussions with Google about using Google AI chips that compete with NVIDIA's semiconductors, which caused NVIDIA's stock price to fall. NVIDIA publicly responded to the report on social media platform “X,” expressing happiness about “Google's success,” but stated that its chips are still a generation ahead of competitors.