Burry Bets Against Nvidia's AI Boom

Michael Burry has disclosed a short-term options hedge against Nvidia (NASDAQ:NVDA), suggesting a bearish outlook on the artificial intelligence leader. He revealed purchasing call options with mid-to-high $200s strike prices, set to expire in December, as a hedge against larger short positions. This move follows Nvidia's latest quarterly results, which surpassed Wall Street expectations and included a growth forecast of approximately 70% through fiscal 2028. However, Burry contends that Nvidia's recent trading performance after earnings has been weaker than its gains suggest. He argues that the current valuation does not adequately reflect the prevailing market sentiment and potential longer-term risks. Burry estimates Nvidia's intrinsic value to be below its current market price, raising concerns about future shareholder distributions and potential earnings pressure as AI investments expand.