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>>Michael Burry Takes on Nvidia in a High‑Stakes $1 Billion AI Bubble Bet That Could Upend Markets

Michael Burry Takes on Nvidia in a High‑Stakes $1 Billion AI Bubble Bet That Could Upend Markets

crypthub

about 2 hours ago

Burry's $1 Billion AI Short

Michael Burry has placed over $1 billion in bearish put options on Nvidia and Palantir, signaling a stark belief that the AI boom will collapse. The move follows his earlier fame for predicting the 2008 housing crash and represents his most aggressive stance yet on the sector. By publicizing the bet, Burry aims to warn investors about what he sees as fundamental flaws in AI valuations.

Nvidia's Defense

Nvidia responded with a detailed seven‑page memo disputing Burry’s calculations on stock‑based compensation and equipment depreciation. The company maintains its accounting practices align with industry standards and argues that demand from customers remains solid. It also contends that the AI market’s dynamics differ significantly from past bubbles like Cisco’s.

Potential Market Impact

Burry’s reputation and his new Substack newsletter have quickly attracted tens of thousands of followers, amplifying his market influence. Critics note that vocal skeptics can trigger the very corrections they predict, raising fears of a self‑fulfilling collapse. With Nvidia valued at trillions, the outcome of this clash could shape the future trajectory of AI investment.

Michael Burry Takes on Nvidia in a High‑Stakes $1 Billion AI Bubble Bet That Could Upend Markets

Burry's $1 Billion AI Short

Nvidia's Defense

Potential Market Impact

Michael Burry Takes on Nvidia in a High‑Stakes $1 Billion AI Bubble Bet That Could Upend Markets

Burry's $1 Billion AI Short