Michael Burry’s AI Trade Doubts Grow: 21% Short Bet Against Nvidia
Michael Burry, the investor famous for calling the 2008 housing crash, is once again betting against a crowd favorite — and this time it’s the artificial intelligence trade. In an August 26 Substack post titled “Nvidia, Friends, and the Rebel Alliance,” Burry disclosed that he has widened his short position in Nvidia, along with Oracle, Palantir, and Nebius, even as Nvidia continued posting standout financial results. The move puts fresh scrutiny on whether Wall Street’s AI enthusiasm has outrun the fundamentals supporting it, and it raises an obvious question: why would Michael Burry short Nvidia stock while admitting the company itself is performing well?
Key takeaways
- Michael Burry increased short positions in Nvidia, Oracle, Palantir, and Nebius, disclosed in an August 26 Substack post.
- Excluding put options, his short stock holdings now exceed 21% of his total portfolio across multiple companies.
- Burry bought December call options on Nvidia with strike prices in the mid-to-high $200 range, describing them as a hedge rather than a bullish bet.
- Those call options represent roughly 3.5 to 4% of his portfolio.
- Burry says Nvidia’s growth and low earnings multiple make the stock look “wildly undervalued” on paper, but he doubts that dominance will last long enough to justify its valuation.
Burry Widens His Bets Against the AI Trade
The core of the story is straightforward: Burry isn’t just shorting Nvidia in isolation. He’s building a broader position against companies that sit at different layers of the AI infrastructure and software stack.
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