Michael Burry reiterates 1987-style crash warning, says Nvidia shorts are the exception

Michael Burry, the hedge-fund investor made famous by the 2008 book and film “The Big Short,” has again warned that markets could be vulnerable to a sudden, historic-style selloff. In a recent interview reported by Quartz, Burry said he was holding short positions tied to his view that risk is building for a sharp downturn, while singling out Nvidia as the only name where his short thesis is not currently paying off.

In the account, Burry framed his concern as an “1987-style” crash scenario, referencing the 1987 stock market crash that featured a rapid, broad decline. He did not provide a new timetable, specific catalysts, or a technical model in the reported remarks, but the thrust was that his portfolio is positioned for volatility that could arrive quickly rather than gradually.

Burry said that all of his short positions remained profitable except for his bet against Nvidia stock. That distinction matters because Nvidia has become central to the modern AI trade, with investors closely tracking its ability to meet demand for AI accelerators and related networking. Even if Burry remains broadly bearish on risk assets, his comments imply that his view on Nvidia’s price path differs from his view on the rest of his short book.

Nvidia, listed on the Nasdaq under the ticker NVDA, is a leading designer of graphics processing units used in gaming and increasingly used for AI training and inference. The company has also built a position in data-center platforms that combine chips and interconnect technologies, making it a bellwether for parts of the semiconductor supply chain that benefit from data-center spending.

Burry’s remarks arrive amid a long-running debate over whether the AI-led boom is sustainable at current valuation levels, and whether market concentration in a handful of high-expectation technology stocks makes equities more fragile. In that context, the fact that he singled out Nvidia as the one unprofitable short suggests either that the stock has been more resilient than he expected, or that market conditions have supported Nvidia’s earnings expectations even as broader risk indicators remain, in his view, stretched.

The reported interview also does not spell out whether Burry’s loss on the Nvidia short reflects operational optimism on the company, a change in market pricing mechanics, or simply timing. It likewise does not disclose the size of his exposure, how long he has held the short, or what particular Nvidia drivers he is watching beyond the general “crash” framing.

For investors and analysts, the immediate takeaway is not a new thesis about Nvidia’s business, but a reminder that even contrarian investors can be right on the macro setup and still be wrong on specific stocks. Watching for follow-through, the next step would be whether Burry adds detail on what he considers the triggers for a fast downturn, and whether his comments evolve as markets move.

A caveat is warranted: the Quartz report presents Burry’s statements without providing the underlying position data, performance metrics, or documentary support for how his shorts are structured. Until more detail is publicly available, it is not possible to determine how concentrated his Nvidia short is, what level he entered at, or whether his view changes in response to new information about Nvidia’s operations and demand.