Michael Burry, Investor from 'The Big Short,' Places Major Bets Against the AI Revolution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy NVDA?
Source: Yahoo Finance
Burry's Investment Strategy: Michael Burry's Scion Asset Management has allocated 80% of its $1.1 billion portfolio to put options against Palantir and Nvidia, indicating skepticism towards the AI sector's growth potential.
Contrarian Perspective: Burry's significant bets against these AI companies raise questions about the sustainability of AI investments, echoing his past warnings about market bubbles and overvaluation.
Market Dynamics: Despite strong earnings from both Palantir and Nvidia, Burry's positions suggest he anticipates a market correction due to factors like slowing AI adoption and economic challenges.
Risks of Shorting: Burry's strategy highlights the risks associated with shorting stocks, particularly for smaller investors, as it can lead to significant losses if the market moves against them.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 165.170
Low
200.00
Averages
264.97
High
352.00
Current: 165.170
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Inventory Clearance Strategy: Management indicated that efforts to clear excess inventory of classic styles resulted in a five-point revenue headwind this quarter, with expectations of a continued revenue decline of 2%-4% in the upcoming quarters, highlighting the slow progress of Nike's turnaround and dampening investor confidence.
- Running Category Growth: Despite overall struggles, revenue from the running category surged over 20%, and North American footwear sales grew 6%, showcasing potential in specific areas; management hopes to leverage this success across other sports categories, yet concerns about ongoing revenue declines persist.
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