By Theron Mohamed
Publication Date: 2026-05-26 12:58:00
Michael Burry warned Nvidia stock looks vulnerable and the AI “tokenmaxxing” trend won’t last in two recent Substack posts.
“The conditions for an aggressive fall are as strong as they have been in the history of the stock,” Burry wrote in a Monday post.
The investor of “The Big Short” fame — known for making prescient calls and dire predictions — added that Nvidia’s next decline could be “more dramatic” than its last three big crashes of 56% in 2018, 67% in 2021, and 43% in 2025.
Burry said his view was based on options and stock market volume as well as fundamentals. He noted that trading volumes of Nvidia stock, on a 50-day moving average basis, are at their “lowest since 1999.” He added that there’s a “dearth of hedging activity” because it’s cheaper to buy put options on Nvidia than for similar stocks.
He said that if Nvidia stock does fall, he expects “very few buyers on the way down” due to insufficient structural demand and market makers having to back off.
In a Friday post, Burry flagged that Nvidia’s customer concentration is “off the charts,” exposing it to a major revenue hit if its biggest buyers pull back.
Nvidia’s recent earnings showed that its top three customers were responsible for 64% of its accounts receivable, up from 56% in the preceding quarter, he noted.
Burry also pointed out that its No. 1 customer accounted for more of Nvidia’s…