Burry Warns Silicon Valley of Accounting Manipulations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy MSFT?
Source: Benzinga
- Accounting Manipulation Warning: Noted investor Michael Burry has issued a stark warning to Silicon Valley, alleging that tech giants are using aggressive accounting tactics to obscure the true costs of the AI infrastructure race, potentially misleading investors about their profitability.
- Inflated Profit Concerns: Burry indicates that major hyperscalers are overstating earnings by an average of 24%, with Oracle Corp. potentially overstating by as much as 48% to 62%, which could severely impact financial transparency and investor trust.
- Asset Quality Risks: He projects a cumulative asset overstatement of $226 billion by 2028, noting that while a $50 billion write-off may seem minor against a $3 trillion market cap, its long-term implications could be significant and detrimental to corporate health.
- Depreciation Cycle Impact: Burry emphasizes that if these companies adopted a more realistic 2.5-year depreciation cycle for AI chips, their reported profitability would vanish, highlighting the potential risks associated with current accounting practices.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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