Business Insider·3 min read·medium

Michael Burry says he's still bearish after Nvidia's 10% plunge — but the market may see it as a 'heck of a trade' soon

Michael Burry says he's still bearish after Nvidia's 10% plunge — but the market may see it as a 'heck of a trade' soon
✦AI Summary

Investor Michael Burry remains bearish on Nvidia despite a recent 10% stock drop following a scandal involving CEO Jensen Huang. While Burry believes the scandal itself won't destroy the company's economics, he warns of long-term risks related to government regulation and competitive pressure.

Why it matters

The analysis reflects broader market anxiety regarding AI-sector valuations and the potential for increased government scrutiny of major tech firms.

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Michael Burry said he doubts that Nvidia's scandal will be "tremendously" damaging to its business. Bloomberg/Getty Images Michael Burry says he's "a bit shocked" by Nvidia stock dropping nearly 10% in two days. The sell-off was sparked by CEO Jensen Huang's affair scandal, which emerged earlier this week. Burry said he's still bearish on Nvidia, but the market could think it's a "heck of a trade" soon. Michael Burry says Nvidia stock could bounce back from its latest scandal, but he's still bearish on the AI chipmaker's longer-term prospects. The investor of "The Big Short" fame said in a Substack post on Tuesday that he was "a bit shocked at how the market has turned on the company." In a Sunday email to employees, Nvidia CEO Jensen Huang admitted to having an affair following reports of his close relationship with a suspected Chinese spy.

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