Michael Burry Bets Against AI Giant Nvidia

A notable figure from the 2008 financial crisis has resurfaced with a significant bearish position. Michael Burry, the hedge fund manager famous for his profitable bet against the U.S. housing market, has established a substantial put options position against Nvidia during the third quarter. This move against the AI chip leader raises a critical question for investors: is this a prescient warning, or a miscalculation of a powerful technological trend?

The timing of Burry’s trade coincides with a notable downturn for the technology sector. On Friday, Nvidia shares declined by 3.6%, pushing the stock more than 10% below its record high from late October. This drop was part of a broader Read more...