By Theron Mohamed
Publication Date: 2026-01-13 14:19:00
Michael Burry says he’s betting against Nvidia instead of Meta, Alphabet, or Microsoft because the chipmaker is particularly vulnerable to the AI boom ending in disaster.
Nvidia is “simply the purest play,” Burry wrote in a Substack post last weekend. The company has become “entirely dependent on hyperscaler spending, and I do not see how that math works,” he continued.
The investor of “The Big Short” fame, who pivoted from running a hedge fund to writing online late last year, added that Nvidia is likely to “sell $400 billion of its chips this year and there are less than $100 billion in application layer use cases.”
“Nvidia also is the most loved, and least doubted,” Burry wrote. “So shorting it is cheap.”
Burry also name-checked CoreWeave, a provider of cloud services built for AI and a strategic partner of Nvidia, calling it the graphics-processor giant’s “pet.”
Nvidia’s stock price has surged 12-fold since the start of 2023, making the graphics-chip maker the world’s most valuable public company with a $4.5 trillion market capitalization.
Nvidia did not respond to a request for comment from Business Insider.
Burry said that betting against Meta would mean he was “also shorting its social media/advertising dominance,” and placing a wager against Alphabet would mean he was “shorting Google Search in all its forms, Android, Waymo, etc.”
He added that being short Microsoft would be tantamount…
