{"id":410087,"date":"2026-01-16T03:43:15","date_gmt":"2026-01-16T03:43:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/410087\/"},"modified":"2026-01-16T03:43:15","modified_gmt":"2026-01-16T03:43:15","slug":"michael-burry-bets-against-nvidia-saysi-do-not-see-how-that-math-works-amid-ai-chip-boom-fears","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/410087\/","title":{"rendered":"Michael Burry Bets Against Nvidia, Says’I Do Not See How That Math Works’ Amid AI Chip Boom Fears"},"content":{"rendered":"\n

Investor Michael Burry, famed for predicting the 2008 housing crash, is now betting against Nvidia Corp. (NASDAQ:<\/a>NVDA<\/a>), warning that the AI-driven chip boom is vulnerable to a sharp reversal.<\/p>\n

In a Substack post<\/a> over the weekend, Burry said he is shorting Nvidia because the chipmaker is “simply the purest play” on artificial intelligence and is dangerously reliant on hyperscaler spending.<\/p>\n

“I do not see how that math works,” he wrote, adding that Nvidia could sell about $400 billion worth of chips this year while there are “less than $100 billion in application layer use cases.”<\/p>\n

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Burry said Nvidia is “the most loved, and least doubted,” making it an attractive short because expectations leave little room for disappointment.<\/p>\n

Burry explained that betting against Meta Platforms Inc.\u00a0(NASDAQ:<\/a>META<\/a>), Alphabet Inc.\u00a0(NASDAQ:<\/a>GOOG<\/a>)\u00a0(NASDAQ:<\/a>GOOGL<\/a>), or Microsoft Corp.\u00a0(NYSE:<\/a>MSFT<\/a>) would mean wagering against their dominant core businesses.<\/p>\n

Shorting Meta would be “shorting its social media\/advertising dominance,” while betting against Microsoft would be “shorting a global office productivity SaaS goliath,” he wrote.<\/p>\n

Those companies, Burry said, are not “pure shorts on AI” and could absorb losses if AI spending slows.<\/p>\n

He also warned of technological obsolescence at Nvidia, noting the company introduces new chip solutions every year or less, raising the risk of future writedowns.<\/p>\n

See Also: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it<\/a>?<\/p>\n

On Monday, Burry criticized Meta after Chief Executive Officer Mark Zuckerberg announced plans to sharply expand AI capacity, warning the company was abandoning its asset-light model for a capital-heavy strategy that could hurt returns.<\/p>\n

Burry said Meta was “throwing away its one saving grace” and cautioned that return on invested capital could fall as spending accelerates.<\/p>\n

Earlier, Burry also turned bearish on Oracle Corp.\u00a0(NYSE:<\/a>ORCL<\/a>), saying he owned put options and had shorted the stock as the company expanded into cloud computing and took on more debt.<\/p>\n

Oracle shares were down about 40% from their September peak.<\/p>\n","protected":false},"excerpt":{"rendered":"Investor Michael Burry, famed for predicting the 2008 housing crash, is now betting against Nvidia Corp. (NASDAQ:NVDA), warning…\n","protected":false},"author":2,"featured_media":410088,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,145924,4321,74],"class_list":{"0":"post-410087","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-michael-burry","12":"tag-nvidia","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/410087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=410087"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/410087\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/410088"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=410087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=410087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=410087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}