Michael Burry, the investor who called the 2008 housing collapse, has signaled he is reconsidering his long-standing short against Nvidia. In a recent public comment, Burry said his bearish stance on the AI chipmaker is "about to get complicated"—language that investors and traders interpret as a likely position unwind.
Burry's hedge fund, Scion Asset Management, has maintained put options against Nvidia in prior disclosures. His move to question that thesis matters because his track record of identifying market dislocations carries outsized weight among sophisticated investors. If Burry is indeed covering his short or moving to neutral, it removes one of Nvidia's most vocal technical bears from the debate.
Nvidia closed at $173.73, up 2.9 percent. The company's stock has climbed on relentless demand for its data center GPUs—it has beaten earnings estimates consistently and now commands a $2.7 trillion market capitalization. Yet the valuation remains contested. Nvidia trades at roughly 70 times forward earnings, a premium that has drawn scrutiny from value-oriented analysts.
Burry's prior skepticism centered on two concerns: whether AI capex demand is sustainable and whether Nvidia's valuation adequately prices downside risk to revenue growth. If those concerns are now softening in his analysis, it suggests either the company has proven durability of its TAM or the risk-reward has shifted enough to justify a tactical cover of short exposure.
Details of Burry's revised position—whether he is flat, long, or merely less short—remain undisclosed. Scion's next regulatory filing will likely provide clarity. Until then, his hint amounts to a public signal that his bear case no longer holds conviction, a material shift for a portfolio manager whose contrarian calls have repeatedly moved markets.
