TLDR
- Michael Burry says Nvidia’s drop could become a short-term trade, but he would not hold the stock long term.
- Nvidia entered a bear market on Nov. 9 after CEO Jensen Huang left the role.
- Burry questioned whether Nvidia earned more from Asia than it has reported.
- A report says Huang and interim CEO Colette Kress clashed over AI financing.
- Nvidia reports earnings on Nov. 17.
Michael Burry says the sell-off in Nvidia may turn into a short-term trade. He does not want to own the stock for the long haul. The comments come days before the chipmaker reports earnings on Nov. 17.
Breaking: Michael Burry says to “get out” of Nvidia $NVDA before it’s too late
Burry's reasonings:
1. Without Huang, customers are free to “slow down deals, push back, renegotiate terms, or simply walk to a competitor”
2. Nvidia financed customer purchases through special… pic.twitter.com/lew0HPUE1z
— Michael Burry Stock Tracker ♟ (@burrytracker) November 12, 2026
Nvidia slipped into a bear market on Nov. 9, more than 25% below its October record. Its board began looking into reports involving Huang, who has since left the CEO role. Kress is now interim CEO.
The board launched an independent investigation after reports that Huang was the target of a foreign intelligence effort. The company said it had no reason to believe national security or company secrets were compromised.
Burry Sees A Trade, Not A Long-Term Hold
“I am not tempted as a long-term hold from here, but I imagine the whole market is going to think this is a heck of a trade fairly soon,” Burry wrote in a Substack post on Nov. 10. He does not expect the Huang matter to hurt Nvidia’s business much.
His bigger worry is competition. Burry believes Nvidia’s edge will shrink over the next five years. He said closer scrutiny of its China chip trade could speed that up.
Nvidia still holds about 80% of the AI chip market, and its CUDA software makes switching costly. Burry has pointed to the startup Etched as serious competition.
He has also questioned how fast AI chips lose value. He wrote that chips may be losing economic value in warehouses while accounting depreciation stays at zero, and he said he was not alleging fraud. Nvidia told analysts that a two- to three-year life for its chips is simply wrong.
Burry holds put options on the Nasdaq-100, a semiconductor ETF, Oracle and Palantir. His largest positions are MercadoLibre and Temple & Webster, each above 10% of his portfolio.
Questions Over Asia And Boardroom Tension
In a post on X, Burry said analysts long ago questioned why Southeast Asia and Singapore needed so many advanced Nvidia chips. He said the real reveal would be evidence that Nvidia booked more revenue and profit from Asia than it let on.
His comment followed a researcher’s claim that Chinese AI models, including DeepSeek-V4-Pro, Kimi K3 and MiniMax-M3, were built on export-restricted Blackwell chips. The researcher estimated the largest clusters used 2,000 to 3,000 GPUs each. Elon Musk replied to the researcher’s post with a thinking-face emoji.
The Wall Street Journal reported tension between Huang and Kress over Nvidia’s financing of AI customers. In August, Huang reportedly called Kress “a deer in the headlights” during a presentation.
The dispute centered on billions of dollars in guarantees for cloud providers and data-center developers. One idea was a $250 billion backstop for OpenAI’s Ohio data center project. Kress reportedly cut the initial commitment in half after investors reacted.
Analysts are split on the road ahead. Dan Ives sees the stock at $225 without Huang and $300 with him. Gene Munster says Nvidia can do well with or without Huang.
Three Republican House committee chairs asked Huang to attend a closed-door briefing on Nov. 18. Sen. Elizabeth Warren said Huang owes Congress answers.
Nvidia reported second-quarter revenue of $96.2 billion, up 106% from a year earlier. It guided for about $108 billion in the third quarter. In September, it approved $150 billion in new buybacks, bringing its remaining authorization to $235 billion.
Nvidia shares were down 1.38% in overnight trading on Thursday. The company reports earnings on Nov. 17.
