'Michael Burra, from the 'Big Short', puts almost half his investment portfolio on the line, short-selling Nvidia shares'
A Wise Intellect's Risky Gamble:
Michael Burry, the legendary fund manager who nailed the 2008 housing crash, is now placing a massive bet against tech titan Nvidia (NASDAQ: NVDA). His latest moves reveal a bold short position on Nvidia, holding 900,000 put contracts worth a whopping $97.5 million, making up almost half of his current portfolio.
According to experts, Burry seems to be asserting that the market's euphoria over Nvidia could be reaching its peak. This sentiment is bolstered by the company's ongoing astronomical stock price, fueled by AI fever and unrelenting investor enthusiasm.
Burry’s gambit against Nvidia doesn't stop there. His latest 13F filing unveiled further short positions against several tech behemoths in China, including Alibaba, Pinduoduo, JD.com, and Baidu. These collective bets amount to over $88 million, spotlighting Burry's broader doubts about the Chinese tech sector’s future growth prospects.
In the case of Pinduoduo and Alibaba, Burry's short positions total 200,000 contracts each, while his put on JD.com amounts to a whopping 400,000 contracts. Trip.com and Baidu round off his list, with smaller but substantial counter-positions.
The AI sector is facing a storm of skepticism, with trend forecaster Gerald Celente warning of a potential dot-com-style bust on Nvidia's horizon. As market leaders in the AI field, Nvidia still remains a substantial player, boasting impressive earnings. Still, Burry's actions reflect a contrarian view: that the stock may have surpassed its fundamentals and is due for a reevaluation.
Nvidia’s shares were trading at $136.84 at the time of Burry's filing, but since then they've gone through a rollercoaster ride, settling at $136,40 +$1,57 (1,16%) in pre-market trading. As the earnings season nears, the market’s attention will be riveted on whether Burry will once again prove to be ahead of the curve or off the mark.
On the other hand, Burry’s portfolio includes put options for PDD Holdings, JD.com, Trip.com, innovative AI and autonomous driving firm BU, and more Chinese technology stocks like Alibaba, Baidu, and Molina Healthcare. His strategy revolves around a concentrated bearish stance on technology and Chinese tech stocks, viewing the AI boom and China tech recovery as speculative and vulnerable.
So, in essence, Michael Burry is also taking a risky stance against Chinese tech giants like PDD Holdings, JD.com, Trip.com, and BU, a clear reflection of his doubts about the viability of the current tech boom and the Chinese market's recovery trajectory.
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Investing in Bitcoin could be an intriguing opportunity for Michael Burry, given his history of predicting market crashes and current stance against tech giants. His skepticism towards the technology sector extends to both American and Chinese companies, making Bitcoin, as a decentralized financial technology, an intriguing prospect for his portfolio.
After his bold moves against tech titans like Nvidia and numerous Chinese tech companies, Burry's next gamble may lie in the digital currency realm, where the tide of financial investment is rapidly shifting. By diversifying his portfolio to include Bitcoin, Burry might be attempting to hedge against potential downturns in the tech market while capitalizing on the nascent and volatile but promising digital finance sector.
