Michael Burry’s Nvidia Short Sinks as AI Rally Surges

• Michael Burry’s $187 million Nvidia put position is heavily underwater.
• The Nvidia stock rose from $130 to $208, 90% above Burry’s strike rate.
• Burry’s AI bets gain traction as Palantir drops 30% and Oracle falls over 55%

Investor Michael Burry, best known for calling the 2008 housing crash, is now facing heavy losses on a major bearish bet against the AI trade. 

Analyst Bull Theory said Burry bought $187 million in Nvidia put options in Q3 2025 with a $110 strike price when Nvidia traded near $130. Interestingly, Nvidia has since climbed to $208, around 90% above the strike.

This leaves the puts with little practical value unless Nvidia falls roughly 47% before their December 2027 expiry. Since Burry placed the trade, Nvidia has added about $2.15 trillion in market value and recently crossed $5 trillion, making it the largest listed company in the world.

Burry Called Nvidia the New Cisco

Burry reportedly described the Nvidia short as the most concentrated way to express a bearish view on the AI trade.

He compared Nvidia to Cisco Systems during the dot-com era. Cisco became the world’s most valuable company in 2000 before falling by about 90% after the tech bubble burst.

Burry’s thesis is based on the point that strong companies can still become poor investments if investors pay too much at the top. Nvidia bulls counter that, unlike dot-com names, Nvidia is producing real profits and real demand from hyperscale AI spending.

Hedge Fund Closed, Public Bear Case Continues

Bull Theory also noted that Burry shut down his hedge fund in November 2025. He now publishes a paid newsletter where he continues outlining his AI bubble thesis.

This means public investors no longer receive regular portfolio filings that once revealed Scion Asset Management’s positions. Without those filings, markets cannot easily track whether Burry increased, reduced, or exited any of his major shorts after late 2025.

While the Nvidia trade is under pressure, some of Burry’s other bearish positions have performed better. Investor Weekly said Burry also targeted Palantir Technologies and Oracle.

Palantir fell more than 30% from its peak, while Oracle dropped more than 55% from its highs after his disclosed positions. The successful moves have kept attention on Burry’s broader call that parts of the AI market are priced for near-perfect growth.

It is important to note that Burry’s argument is not that AI has no value, but he claims that stock prices and capital spending may have moved too far ahead of returns. Major cloud firms, including Alphabet, Amazon, Meta Platforms, and Microsoft, are expected to spend hundreds of billions on AI infrastructure through 2026.

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