Michael Burry Cuts Nvidia Puts, Keeps AI Bearish Bets
Michael Burry has fully sold his December 2026 Nvidia put options and exited near-term Palantir puts as part of a portfolio de-risking move. However, the Big Short investor has not abandoned his bearish AI and technology outlook. Burry still holds December 2027 puts on Palantir and the Nasdaq-100, while short positions represent more than 21% of his portfolio. Nvidia remains among his notable short positions, alongside Oracle, Palantir and Nebius.
Burry said the move was intended to moderate exposure and preserve liquidity ahead of what he expects could be an “interesting market this fall”. His investment thesis questions whether AI capital expenditure, GPU purchases and data-centre construction will generate sufficient returns. He has also criticised financing structures supporting AI infrastructure and warned that rapid semiconductor development could accelerate chip obsolescence.
The repositioning contrasts with improving corporate earnings expectations. S&P 500 full-year 2026 earnings growth forecasts have risen to 32% from 24%, after 86% of companies beat second-quarter estimates. Hyperscaler AI capital expenditure is projected to exceed $754 billion. For traders, Burry’s move signals caution rather than an immediate reversal in the AI trade. Nvidia and other semiconductor stocks may remain sensitive to valuation concerns, capex guidance and AI monetisation data.
Neutral
The expected cryptocurrency-market impact is neutral because the article concerns Nvidia, Palantir, the Nasdaq-100 and broader AI equities rather than a cryptocurrency or blockchain project. Burry’s continued bearish positioning could create short-term risk sentiment pressure across high-beta technology assets. If Nvidia or semiconductor stocks fall sharply, traders may temporarily reduce exposure to crypto assets through broader risk-off positioning, particularly in Bitcoin and other liquid majors. However, the report does not provide a direct catalyst for crypto selling.
The immediate signal is mixed. Selling near-term Nvidia puts may reduce the appearance of an imminent bearish trade, while retaining longer-dated puts and substantial stock shorts confirms that Burry remains concerned about AI valuations, capital expenditure and monetisation. Similar episodes involving prominent investors warning about technology bubbles have historically increased volatility but have not reliably determined the long-term direction of crypto markets. The stronger market drivers remain interest rates, dollar liquidity, ETF flows, regulatory developments and crypto-specific adoption.
In the short term, traders should monitor Nvidia and Nasdaq futures, semiconductor performance, volatility indexes and hyperscaler capital-expenditure guidance. Weak AI earnings or reduced capex could strengthen risk-off correlations and pressure crypto prices. In the long term, continued AI earnings growth and sustained infrastructure demand could support risk appetite, while disappointing returns on AI investment could weigh on technology and speculative assets. Overall, the news reinforces caution but is insufficient to justify a bullish or bearish crypto-market classification.