Burry increases Nvidia short
Investor Michael Burry added to a bearish position against Nvidia, a move noted as a market signal about skepticism toward AI‑driven capital spending and valuations. TheStreet reported the increase in Burry’s bet, framing it as a warning that Nvidia has become the market’s focal point for AI capex expectations (thestreet.com).
Michael Burry’s hedge fund increased its bearish bet against Nvidia in late 2025, according to Scion Asset Management’s most recent securities filing. (sec.gov) Scion’s filing for the quarter ended September 30, 2025 showed Nvidia put options among just eight disclosed positions, alongside a larger put position in Palantir. Sherwood reported the filing covered put options tied to roughly 1 million Nvidia shares, with a notional value of about $187 million. (sec.gov) (sherwood.news) A put option is a contract that rises in value if a stock falls. A 13F filing shows many United States-listed positions held at quarter-end, but it does not show the strike price, expiration date, or whether the trade was later closed or hedged. (sec.gov) Nvidia sits at the center of the artificial intelligence spending boom because its graphics processing units, or specialized chips for training and running artificial intelligence models, power much of the new data-center buildout. Nvidia reported fiscal 2026 revenue of $215.9 billion, up 65% from a year earlier, with data-center revenue driving most of that growth. (investor.nvidia.com) The company has also told investors that its customers’ access to data centers, electricity, and capital is crucial to future sales. In its annual report for the year ended January 25, 2026, Nvidia said shortages in those inputs could hurt revenue and financial performance. (sec.gov) That leaves Nvidia exposed to the same question hanging over the broader market: whether cloud providers and corporations will keep spending at the current pace on artificial intelligence infrastructure. Nvidia’s fourth-quarter data-center revenue reached $62.3 billion, up 75% from a year earlier, which shows how much investor expectations now rest on that demand holding up. (investor.nvidia.com) Burry is closely watched because he became famous for betting against the United States housing market before the 2008 financial crisis, but his more recent public calls have been mixed. His filings have also shown fast portfolio turnover, which means a high-profile position can signal caution without proving a long-term conviction trade. (britannica.com) (sec.gov) Nvidia’s side of the argument is straightforward: demand is still rising, and management says customers are still racing to add computing capacity for artificial intelligence. In its February 2026 earnings release, Chief Executive Jensen Huang said customers were investing in “AI compute” as they build what he called “factories” for that work. (investor.nvidia.com) The filing does not prove Burry was right about Nvidia, and it does not show whether the trade is still on today. It does show that one of Wall Street’s best-known bears used a required disclosure to lean against the market’s biggest artificial-intelligence stock. (sec.gov 1) (sec.gov 2)
