- The most famous shortstop Michael Burry missed the mark with his short positions on Nvidia and is now suffering losses.
- He also believes that a bubble of AI companies has formed in the investment market.
Investor Michael Burry, famous for his prediction of the 2008 housing market crash, is suffering significant losses from a major bearish bet against artificial intelligence.
Bull Theory Analyst сообщилBerry bought $187 million in Nvidia stock put options for Q3 2025 with a strike price of $110 when Nvidia shares were trading around $130. Since then, Nvidia’s share price has risen to $208, about 90% above the strike price.
This makes the put options of little practical use unless Nvidia shares fall 47% before their expiration in December 2027. Since Berry’s deal, the market capitalization Nvidia has grown by approximately $2,15 trillion and recently exceeded $5 trillion, making the organization the largest publicly traded company in the world.
Burry famously described a short position in Nvidia shares as the most concentrated way to express a bearish view on an AI deal.
His thesis is based on the idea that strong companies can become poor investments if investors overpay at their peaks. Nvidia stock rally proponents counter this, arguing that Nvidia is generating real profits and creating real demand thanks to its massive investments in AI.
Others bearish positions Berry’s Palantir Technologies and Oracle outperformed, with Palantir shares down more than 30% from their peak and Oracle shares down more than 55%.
Berry doesn’t insist that AI has no value, but he does believe that stock prices and capital expenditures are too far ahead of expected returns.
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