Michael Burry bets on Nvidia as stock rallies

Legendary investor Michael Burry recently picked up call options on Nvidia just before the company reported its latest earnings. While he is famous for his bearish outlook on the chipmaker, this short term move proved profitable. Investors who followed his lead on August 26 would have seen a $1,000 investment grow to $1,102.50 by early September. This gain represents a return of over 10 percent in less than two weeks.

Despite this successful trade, Burry maintains a cautious stance on the broader AI industry and Nvidia in particular. He has previously compared the company to Enron and raised concerns about their accounting practices. Specifically, he pointed to customer payment deferrals and high concentration in accounts receivable as red flags that investors should watch closely.

Burry remains critical of Nvidia’s strategy regarding infrastructure funding and recent acquisitions. He suggests that some of the company’s announcements are meant to mask underlying risks rather than demonstrate genuine growth. While the stock price continues to climb, the contrast between Burry’s trading actions and his public warnings highlights the complexity of betting on high growth tech firms today.