Michael Burry Maintains Skepticism Toward Nvidia Despite Strong Earnings
Michael Burry, known for his contrarian investing style, has continued to express skepticism about the artificial intelligence (AI) narrative and its impact on companies like Nvidia. In August 2026, he added December call options with strike prices in the mid-to-high $200s while simultaneously increasing short positions in the stock ahead of earnings. Burry described these calls as a hedge rather than bullish bets, emphasizing that they were offset by his existing put and short positions. Nvidia's Q2 fiscal 2026 results exceeded expectations with adjusted earnings per share of $2.22 (beating estimates) and revenue surging to $96.2 billion—106% year-over-year growth. The company also raised its guidance for the current quarter, projecting over $108 billion in revenue plus or minus 2%. Despite Burry's bearish stance, Nvidia shares rose nearly 8% following earnings on August 27. Burry’s skepticism is rooted in his belief that the stock price does not align with market narratives and AI hype. He also added to short positions in Oracle, Palantir, and Nebius while increasing long holdings in Birkenstock and Freddie Mac.
Tickers: $FMCC $NVDA $ORCL $PLTR
Topics: AI skepticism call options Michael Burry Nvidia short selling