He made his fortune shorting the market, and he's preparing for a similar pullback.
He made his fortune shorting the market, and he's preparing for a similar pullback.
Michael Burry became a popular voice in the investing community after he correctly predicted the 2008 mortgage crisis, shorted the market, and made a fortune. Although he closed his management fund last year, he continues to invest and share his market views in prominent social media posts.
Burry has recently been critical of the artificial intelligence (AI) build-out, and putting his money where his mouth is, he's betting against Nvidia (NVDA +2.54%), Palantir Technologies (PLTR +4.74%), Tesla (TSLA +3.41%), and Micron Technology (MU +1.96%). Is he right?
Burry first disclosed Nvidia puts in the first quarter of 2025. He has compared the current AI situation to the dot-com bubble that burst in 2000 and named Nvidia the star player.
He has two main arguments. First, he says the chips aren't being depreciated properly, and their usable lifespan will be shorter than anticipated.
The second concerns Nvidia's circular financing. Nvidia has many mutually beneficial relationships with other companies, such as its agreement with CoreWeave, in which it has a large stake and which is buying Nvidia's chips.
$221.97+$5.50 (+2.54%)
NASDAQ · As of 4:00 PM ET 10/21/26
His musings set off a firestorm between him and Nvidia, which shot back with a seven-page defense. Burry's reaction was, "I stand by my analysis. I am not claiming Nvidia is Enron. It is clearly Cisco." The difference being that Enron was a shell company used to manipulate investors, while Cisco's business simply dried up after the dot-com bust.
Is he right? The bull thesis looks strong for Nvidia. It is at the center of AI, and AI continues to develop, with unceasing demand. So far, the hyperscalers are thriving.
Averytin News Financial update.