Investor Michael Burry Bets Against Nvidia Stock (NVDA)

Closely followed Investor Michael Burry has bet against leading chipmaker Nvidia (NVDA).

Burry, who successfully bet against the subprime mortgage market and was profiled by author Michael Lewis in the book “The Big Short,” has now turned bearish on NVDA stock. According to his latest 13-F regulatory filing with the U.S. Securities and Exchange Commission (SEC), Burry’s investment firm Scion Asset Management opened put calls on Nvidia’s stock during this year’s first quarter.

Puts are bets that a share price will decline over a period of time. Burry’s bet appears to have been a successful one as NVDA stock fell 37% from January through the beginning of April. Nvidia’s share price has since rebounded and its market capitalization is again above $3 trillion.

It is not known if Burry continues to be short Nvidia stock or if he has ended the trade. The 13-F forms are backward looking and show the moves of investors in the previous quarter. The SEC requires all investment managers that hold over $100 million in securities to disclose their positions in quarterly filings known as 13-Fs.

Bearish on China

Nvidia was not the only stock that Michael Burry shorted during Q1 of this year. The well-known investor also turned bearish on Chinese stocks during the quarter, buying bearish puts on shares of Chinese stocks which he had previously been accumulating.

The Chinese stocks that Burry shorted include Alibaba (BABA), Baidu (BIDU), and JD.com (JD), three of China’s best known and well-regarded technology firms. The only long position remaining in Burry’s concentrated portfolio is Estee Lauder Cos. (EL). The investor sold all his other stocks.

Is NVDA Stock a Buy?

The stock of Nvidia has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 34 Buy, five Hold, and one Sell recommendations assigned in the last three months. The average NVDA price target of $164.51 implies 22.01% upside from current levels.

Read more analyst ratings on NVDA stock