Nvidia Has Shed $1.7 Trillion in a Month — Burry Still Won't Buy

Nvidia has lost more than $1.7 trillion in market value in just over a month — a drop larger than Meta's entire market capitalization — and Michael Burry still won't touch the stock.

The famed short-seller laid out his position in a Substack post on Tuesday titled "Portpourri — November 10, 2026 — New Portfolio." He wrote that he was "a bit shocked at how the market has turned on the company," but he's staying bearish on the AI chipmaker's longer-term prospects.

The trigger for the latest leg down: CEO Jensen Huang admitted to an affair in a Sunday email to employees, after reports surfaced of his close relationship with a suspected Chinese spy. Since that disclosure, Nvidia stock has fallen nearly 10%, to about $169 a share as of Tuesday's close.

The damage runs deeper than one scandal. Nvidia shares have plunged more than 30% from their all-time high of roughly $243, set on October 6. Two forces are compounding the pressure: investor anxiety over excessive AI spending, and fears of stricter regulation after Democrats won control of both the House and the Senate last week.

What did Burry actually say?

Burry said that if he weren't already bearish on Nvidia, he might be feeling a "little pumped" as a contrarian investor. He doubts the "scandal will hurt the economics of the business tremendously."

But he flagged a sharper risk: Nvidia's competitive advantage could now erode faster over the next five years than he previously expected. He pointed to the "danger" that the controversy could push the US government to crack down on Nvidia's chip trade with China and open investigations into the company's business practices.

Burry didn't stop there. He described Nvidia's investments in, and demands of, other AI players as "mafia-like behavior," and said enforcement agencies would find plenty to question if they "stop ignoring and start investigating."

His bottom line on buying the dip? He's not "tempted" to buy and hold Nvidia at current prices. Still, he conceded he could "imagine the whole market is going to think this is a heck of a trade fairly soon."

He predicted Nvidia's dominant market position would "battle mightily" against "valuation multiples, still hopped up on sky-high margins, getting too low."

Nvidia did not immediately respond to a request for comment from Business Insider. The stock rallied about 4% in premarket trading on Wednesday.

How is Burry positioned against Nvidia?

Burry has been betting against Nvidia in public for months, and he's been specific about the instruments.

• In an October 11 post, he said he'd shorted the VanEck Semiconductor ETF — a fund where Nvidia makes up nearly 20%.
• In a September 28 post, he said he'd swapped his outright Nvidia short for bearish put options struck in the mid-$100s and expiring next September, seeking more leverage.
• In January, he explained Nvidia was "simply the purest play" for anyone negative on the AI boom, because the company is "entirely dependent on hyperscaler spending."

He has repeatedly warned the AI rush will end badly, citing a specific set of red flags: aggressive accounting, circular financing, hidden debts, overinvestment in chips and data centers that quickly become obsolete, and excessive stock-based compensation.

Burry is best known for his contrarian bet against the mid-2000s housing bubble, chronicled in the book and film "The Big Short." He shifted from running a hedge fund to writing about his personal investments roughly a year ago.

The takeaway in plain words: Burry thinks the Huang scandal itself won't sink Nvidia's economics — but it may hand regulators the excuse they need, and that's what could shrink the moat years ahead of schedule.