Michael Burry, famed for predicting the 2008 financial crisis, has doubled down on his bet against Nvidia, signalling a strong conviction that the AI chipmaker’s rally is unsustainable. The investor, known as "The Big Short," has increased his holdings of long-dated put options on Nvidia, even as he snaps up shares in Chinese tech giants Alibaba and JD.com.
Burry’s move comes as Nvidia’s stock performance has cooled. While the company’s one-year growth was around 65%, it has tracked down 2% over the past six months, with a year-to-date increase of just 1.2%.
According to his Substack post, Burry acquired January 2027 $115 strike puts at $3.30, adding to his existing $100 strike puts. He estimates this trade represents 3% of notional value, suggesting that borrowing costs could escalate if Nvidia’s stock price declines significantly.
Simultaneously, Burry’s investment in Alibaba and JD.com indicates a strategic shift towards undervalued assets, while actively betting against the most popular trades in the market.
Burry gained notoriety for his prescient bet against the housing market before the 2008 crash. His fund, Scion Capital, generated nearly $100 million for himself and $725 million for his investors, as reported by CNBC.
He launched Scion Capital in 2000, according to MoneyWeek, before closing it after the financial crisis. He returned in 2013 with Scion Asset Management. Despite managing a relatively modest $155 million in assets as of March 2025 before winding down in November 2025, Burry remains influential, sharing his views on AI and other key investment themes via X (formerly Twitter) and Substack.
Burry’s bearish stance on Nvidia is meticulously structured, with the numbers revealing his clear intent. With Nvidia’s stock currently trading around $188.63, according to isharepricetarget.com, the $115 strike price is roughly 39% below the current market value.
