AI bear slams Nvidia's GPU pitch: 'There's not scarcity other than that which is created by Jensen Huang'

Ed Zitron, CEO of public relations firm EZPR and well-known critic of the AI spending boom, says Nvidia ( NVDA ) is creating the scarcity it sells against.

Zitron pointed to how concentrated Nvidia's customer base is, saying that five companies accounted for about 70% of Nvidia's accounts receivable in the first half of the year, a risk factor that "Big Short" investor Steve Eisman also recently noted.

"Jensen Huang is channel stuffing. It's obvious," Zitron said on Yahoo Finance's The 8:30 on Friday (video above). "He's forcing GPUs down the channel saying, you have to buy these now, or they won't be available in a few months. I think that's morally reprehensible."

"It's driving up the price of every imaginable consumer electronics. It's making everyone's life worse so that Jensen Huang's life can be better and so that whoever owns Nvidia stock can feel slightly better."

Asked whether Huang's pitch is simply a demand signal, given years-long lead times in semiconductors, Zitron said, "How is there scarcity of a product that they have too many of? There's not scarcity other than that which is created by Jensen Huang."

Zitron also questioned what the data center build-out delivers. "What does more data centers actually get us?" he asked, citing a Bloomberg report that Microsoft ( MSFT ) has about 2 gigawatts of AI compute online out of 12 gigawatts reported, while noting that Amazon ( AMZN ) recently canceled a data center in Loudoun County, Va.

He has argued that OpenAI ( OPAI.PVT ) and Anthropic ( ANTH.PVT ) have become "load-bearing" for Microsoft ( MSFT ), Alphabet ( GOOG ), Amazon, CoreWeave ( CRWV ), and Nebius ( NBIS ). Asked what should happen if they falter, he didn't hesitate: "Let them die."

The hosts pushed back, noting that a record share of Americans own stocks and that some, including Bloomberg's Eric Balchunas, have argued that could pressure the government to step in during a crash. Zitron said a rescue wouldn't hold the market up anyway. "You can bail them out all you want, but unless everyone's buying more and more GPUs at more and more high prices, it's going to crash either way," he said. "The GPU sales are what matter. That's what's keeping the market alive."

Internal AI tools helped analyze interview transcripts, research, and draft this post. Humans reviewed, edited, and fact-checked this post before publication.