Nvidia(US:NVDA) Finbold·2025-05-16 13:42Core Viewpoint - Michael Burry, renowned for predicting the 2008 housing crash, is taking a significant short position against Nvidia, indicating a belief that the stock may be due for a substantial pullback [1][2]. Nvidia Position - Burry's firm, Scion Asset Management, holds 900,000 put contracts against Nvidia, valued at approximately $97.5 million, which constitutes nearly 49% of his disclosed portfolio [1]. - The timing of this position is notable as Nvidia's stock trades near record highs, driven by strong demand for GPUs and investor enthusiasm for AI infrastructure [2]. - Despite Nvidia's strong earnings and market leadership in AI, Burry's trade suggests a contrarian view that the stock has overshot its fundamentals and may face revaluation [6]. Broader Market Sentiment - Burry's bearish stance extends beyond Nvidia, as he has also taken short positions against several major Chinese tech companies, including Alibaba, Pinduoduo, JD.com, Trip.com, and Baidu, collectively valued at over $88 million [3][4]. - The scale of these positions indicates significant skepticism about the outlook for Chinese equities, potentially influenced by China's economic recovery, regulatory issues, or geopolitical tensions [4]. Market Dynamics - The Nvidia short position reflects broader concerns about an overheating AI sector, with some market watchers warning of a potential "dot-com-style" bust due to unchecked enthusiasm [5]. - Burry's large position appears to be a directional bet rather than a hedge, reminiscent of his previous successful short against subprime mortgages [7]. - As of the filing, Nvidia shares were trading at $136.84, with subsequent volatility noted, currently trading at $136.40, reflecting ongoing bullish momentum [8].