Michael Burry discloses new short position against Nvidia as he targets the AI stock complex

Michael Burry, the investor made famous by the “Big Short,” disclosed that he has opened new short positions tied to the artificial intelligence (AI) trade, according to a report published Tuesday by Yahoo Finance. Burry said he sold Tesla and Nvidia shares short as part of what he characterized as a renewed wave of AI-related speculation, indicating skepticism toward the valuations of companies that have benefited from the AI boom.

In the Nvidia case, Burry said he sold the stock short at $416.22. A short sale is a strategy in which an investor borrows shares and sells them on the open market, betting the price will fall later so the shares can be repurchased at a lower price. While the reporting points to the initial entry level Burry cited for Nvidia, it does not provide additional details such as position size, whether the trade is held in a fund structure, or how long he expects to keep it on.

The same disclosure described a broader setup, with Burry also taking a short position against Tesla. Tesla is not primarily viewed as a semiconductors company, but it has drawn AI-related attention in recent years due to its use of machine learning systems in driver-assistance features and because many investors group high-growth technology names into a common “AI” narrative.

Burry’s comments, as characterized by the Yahoo Finance piece, fit a pattern seen in previous cycles: when the market price of growth companies accelerates rapidly, he has historically argued that expectations can outpace underlying fundamentals. In this latest round, his target list includes Nvidia, which sits at the center of the modern AI infrastructure stack through its data-center GPUs and networking platforms, and includes Tesla, which has been a high-beta proxy for broader risk appetite.

For Nvidia, the decision is notable because it arrives at a time when investors continue to treat the company as a key supplier to AI training and inference demand. Nvidia’s market reputation has been built on its ability to deliver chips and associated software that customers use to run large-scale AI workloads. Even so, a short position does not require a company to “fail” operationally. It is compatible with scenarios where growth slows, margins compress, competitive dynamics intensify, or stock prices fall after large gains.

The report does not specify what specific fundamental measure or valuation framework Burry used to support his view that the AI trade may be “in a bubble” again, nor does it spell out any timetable for when he expects the correction to occur. It also does not state whether the short positions are meant to hedge other holdings, whether the investor used options as part of the structure, or whether the entries represent the only trades in the alleged AI-related buildup.

A separate caveat is that disclosures by high-profile investors can be difficult to interpret without more granularity. The Yahoo Finance report, as summarized in its headline and description, identifies the initial short-sell price Burry said for Nvidia, but it does not provide subsequent trade adjustments, covering activity, or the current status of those positions as of a later date.

For markets, the immediate takeaway is less about proving a thesis and more about how quickly a contrarian view can re-emerge when AI-linked stocks continue to command attention. Traders will likely watch for follow-through, including whether any additional disclosures clarify exposure levels, whether other names are targeted, and how the market reacts around the next set of sector updates and company earnings.

The story also highlights the risk that AI narratives can become crowded. Even investors who disagree on fundamentals often converge on the possibility of sharp pricing moves, especially when positioning is concentrated in a small group of beneficiaries. As always, the extent of any impact from Burry’s trades will depend on broader market liquidity and on whether his view finds a larger audience beyond one disclosure.