Nvidia (NVDA) is still seen as the biggest winner from the AI boom. The stock has jumped more than 1000% over the past 3 years, and the company recently crossed a market value of about $4 trillion. While most investors cheered its latest strong earnings report, Michael Burry used the moment to highlight his growing skepticism.
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Burry, known from “The Big Short,” is now openly bearish on Nvidia and the wider AI trade. He has suggested that the excitement around AI may be running ahead of real demand, and he has compared today’s environment to the late 1990s tech bubble.
Burry Turns Up the Pressure on NVDA
Over the past few weeks, Burry has become more active and vocal. He has raised questions about Nvidia’s stock-based pay and accounting. Recent filings also showed large put options against Nvidia and Palantir (PLTR), which means he stands to profit only if the stocks fall. The size of the position signals that this is not just commentary. He is backing his view with money.
Burry has also argued that some AI buyers may be stretching depreciation timelines on expensive chips, which could make earnings appear stronger than they are. He believes demand may be inflated because many AI companies buying Nvidia chips depend on investor funding rather than real customer revenue.
His comments led to a public exchange with Palantir CEO Alex Karp, who dismissed Burry’s thinking as “crazy.” Burry replied by saying Karp misunderstood basic SEC filings. The debate reflects a bigger divide in the market. Is this a long-term technology shift or the peak of hype?
Nvidia Pushes Back Against the Criticism
Nvidia pushed back by sending a memo to analysts explaining why it disagrees with Burry’s claims. The company said its compensation practices and accounting are in line with other large tech firms.
For now, most analysts remain bullish because demand for Nvidia’s products still looks strong.
Where the Story Goes from Here
Burry has just launched a new paid newsletter, and already thousands of investors are following him. Some people believe he is early again but will eventually be right. Others think he is repeating the same bearish call he has made for more than a decade.
So now the big question is simple. Will Nvidia continue to rise as the leader of the AI age, or will Burry’s warning become the next big market call that everyone remembers?
Is Nvidia a Buy, Hold, or Sell?
Wall Street is still firmly in Nvidia’s corner, even after the recent volatility. Out of 41 analysts currently covering the stock, 39 rate it a Buy, with only one Hold and one Sell. The average 12-month NVDA price target now sits at $257.72, which implies nearly 43% upside from the recent price.