By GuruFocus News
Publication Date: 2026-09-28 06:55:00
On September 28, 2026, investor Michael Burry (Trades, Portfolio) underscored the critical importance of the AI sector to the U.S. economy, while expressing doubts about the long-term sustainability of major AI companies like Nvidia NVDA. Despite his concerns, Burry has taken short positions in NVDA and Oracle, reflecting broader skepticism about whether the heavy capital investments in AI will translate into durable profits. This development adds a new layer of complexity to Nvidia’s valuation narrative amid ongoing market interest.
- GF Value™ verdict: Nvidia’s current price of $225.07 is approximately 43.4% below its GF Value™ of $397.94, indicating significant undervaluation but with a cautionary label of “Possible Value Trap, Think Twice.”
- GF Score™: An impressive 96 out of 100, signaling strong overall fundamentals with top ranks in profitability, growth, and financial strength.
- Insider activity: No insider buying reported in the past 12 months, with substantial insider selling totaling $2.2 billion, suggesting cautious sentiment from those closest to the company.
What’s Behind the News?
Michael Burry (Trades, Portfolio)’s recent public comments emphasize the pivotal role AI plays in the U.S. economy’s future trajectory, cautioning that the current administration cannot afford to let AI-driven growth stall. However, his short positions in Nvidia and Oracle reveal skepticism about the sustainability of these companies’ lofty valuations and the returns…
