Michael Burry Trims Bearish Bets on NVIDIA and CoreWeave Amid Strong Performance
Michael Burry, founder of Scion Asset Management, has reduced his bearish exposure to NVIDIA (NASDAQ:NVDA) by exiting December 2026 put options. This move comes as NVDA's stock has surged nearly 19% year-to-date and delivered strong Q2 FY2027 earnings results with revenue up over 100%. Burry cited time decay as a key factor in closing the short-term hedges, though he remains bearish on AI-related stocks by holding put options on Palantir (NASDAQ:PLTR) and Invesco QQQ Trust (NASDAQ:QQQ). Burry's decision reflects growing difficulty for bears to maintain positions against AI infrastructure leaders. NVIDIA’s Data Center segment grew 117% year-over-year, driven largely by Blackwell Ultra adoption, while supply commitments hit $279 billion in the latest quarter. CoreWeave (NASDAQ:CRWV), a key player downstream of NVIDIA's roadmap and early adopter of its Vera Rubin NVL72 system, also faces reduced bearish pressure due to strong demand for AI compute resources. Despite trimming near-term hedges, Burry has not abandoned his broader thesis on the sector. He continues to hold long-dated puts as a signal that he still sees potential downside risk in 2027.
Tickers: $CRWV $NVDA $PLTR $QQQ
Topics: AI sector bear thesis Michael Burry NVIDIA (NVDA) short positions