Michael Burry increased his short position in Nvidia ahead of the company’s earnings release, according to BeInCrypto, while also buying Nvidia call options expiring in December with strike prices in the upper-$200 range as a hedge. Burry said the calls were not a directional bet on a rise in Nvidia shares and that their cost could be covered by his existing short exposure and put-option positions.
Burry argues that Nvidia’s relatively low price-to-earnings ratio may mask valuation risks tied to what he sees as the company’s short-term monopoly position. Based on his own valuation work, he believes Nvidia’s theoretical value sits well below the current market price. He also expressed concern that the company may keep expanding capital expenditures and later face pressure to cut earnings expectations if the AI investment cycle peaks.
Beyond Nvidia, Burry reportedly opened or increased bearish positions against Oracle, Palantir, Nebius, and Caterpillar. His stock short positions now account for more than 21% of his portfolio, excluding put options.
Michael Burry increased his short position in Nvidia before the company reported earnings, according to BeInCrypto, and also bought Nvidia call options expiring in December with strike prices in the upper-$200 range as a hedge.
Burry said the call options were not a bet on Nvidia shares moving higher. He said the cost of those contracts could be covered by his existing short positions and put-option exposure.
Burry’s view on Nvidia’s valuation
Burry said Nvidia’s lower price-to-earnings ratio may obscure valuation risk created by its short-term monopoly position. In his own calculations, the company’s theoretical value is well below its current market price.
He also said he is concerned that Nvidia will continue to expand capital expenditures and could face downward pressure on earnings expectations after the AI investment cycle peaks.
Other short positions in the portfolio
In addition to Nvidia, Burry also opened or added to short positions in Oracle, Palantir, Nebius, and Caterpillar. The report said stock short positions now make up more than 21% of his portfolio, excluding put options.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
