Michael Burry, the hedge fund manager famed for predicting the 2008 housing crash, is now making a bold bet against Nvidia (NASDAQ: NVDA).
According to his latest 13F filing, Burry’s firm, Scion Asset Management, has taken a massive short position against the AI chipmaker, holding 900,000 put contracts worth approximately $97.5 million. That single trade now accounts for nearly 49% of his disclosed portfolio, underscoring an extremely high-conviction view that Nvidia may be due for a significant pullback.
The timing is particularly notable, as Nvidia continues to trade near record highs, fueled by demand for its GPUs and widespread investor enthusiasm for artificial intelligence infrastructure. While many on Wall Street remain bullish, Burry’s outsized put position suggests he believes the hype may have reached unsustainable levels.
What stocks is Michael Burry shorting?
His bearish stance doesn’t end with Nvidia. The filing also reveals new put options against several major Chinese tech companies, including Alibaba, Pinduoduo, JD.com, Trip.com, and Baidu.
Collectively, these positions amount to over $88 million in market value, signaling broader skepticism about the outlook for Chinese equities. Whether that concern stems from China’s patchy economic recovery, regulatory overhang, or geopolitical tension with the West remains to be seen, but the scale of the bets leaves little doubt that Burry sees significant downside.
Interestingly, Scion’s put on JD.com totals 400,000 contracts, while Pinduoduo and Alibaba each represent 200,000 contracts. Trip.com and Baidu round out the disclosure, with smaller but still substantial positions.
The Nvidia short, however, is the centerpiece, and it echoes broader concerns about an overheating AI sector. Several market watchers, including trend forecaster Gerald Celente, have recently warned of a “dot-com-style” bust fueled by unchecked AI enthusiasm impacting Nvidia.
While Nvidia has delivered blockbuster earnings and remains a market leader in the AI space, Burry’s trade reflects a contrarian take: that the stock has overshot its fundamentals and may face a revaluation.
Importantly, Burry’s move appears to be a statement, not just a hedge. The sheer size of the position, and its weighting in Scion’s portfolio, indicates directional intent rather than risk management. That approach is reminiscent of his now-famous short against subprime mortgages, a trade that was heavily criticized at the time but ultimately vindicated.
Nvidia shares were trading at $136.84 at the time of Burry’s filing. Since then, they have experienced plenty of volatility although they now trade at $136,40 +$1,57 (1,16%) in pre-market, continuing to attract bullish momentum.
Whether Burry is once again ahead of the curve, or misreading the market, remains to be seen. As earnings season nears, investor sentiment around AI stocks like Nvidia will be closely watched.
Disclaimer: The featured image in this article is for illustrative purposes only and may not accurately reflect the true likeness of the individuals depicted.
