Michael Burry Says Nvidia Could Soon Be a 'Heck of a Trade' but Warns Its Edge Will Shrink Within Five Years

Michael Burry sees a possible short-term opportunity in Nvidia after its recent share-price fall, but remains reluctant to hold the stock for the long term. He expects the chipmaker's competitive advantage to narrow over the next five years.

In a post on his Cassandra Unchained Substack on 10 November 2026, Burry said he was 'a bit shocked at how the market has turned on the company'. Nvidia shares closed at $168.89 on 10 November, down 5.5 per cent from the previous session. They rebounded on 11 November, but remained more than 27 per cent below their intraday high of $243.37 on 6 October.

Burry Sees Nvidia as a Potential Short-Term Trade

'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.

The investor's bet against the US housing market before the 2008 financial crisis was chronicled in Michael Lewis's book The Big Short. He has previously taken bearish positions involving Nvidia and other technology stocks, but his latest comments did not disclose a new position in the shares.

Nvidia Faces Growing Competition in AI Chips

Burry's five-year warning centres on Nvidia's competitive position, which he believes could erode faster than previously expected. 'Still, I believe Nvidia's competitive advantage will shrink over the next five years,' he wrote.

Nvidia's position rests on graphics processing units (GPUs), which accelerate artificial intelligence training and inference, and CUDA, its parallel computing platform and programming model. Advanced Micro Devices (AMD) is developing competing AI accelerators, while major cloud providers are investing in custom chips to reduce their reliance on external suppliers.

Burry Sees Limited Business Impact From Huang Controversy

Burry does not expect the controversy involving Nvidia chief executive Jensen Huang to damage the company's underlying business 'tremendously'. He identified possible tighter US scrutiny of Nvidia's China-related chip sales and investigations into its business practices as risks.

He has previously described some of Nvidia's commercial dealings with other AI companies as 'mafia-like behavior'. The phrase was Burry's own characterisation, not an established finding of misconduct.

Nvidia Board Opens Probe Into Reported Intelligence Threat to Huang

Huang acknowledged in a message to Nvidia employees on 8 November that he had been unfaithful to his wife. His admission followed reports about his relationship with Alice Huang, a former executive at Singapore-based cloud computing company Megaspeed International. Alice Huang is not related to Jensen Huang, and he did not identify her in his employee message.

The New York Times reported that US intelligence agencies had determined Alice Huang was gathering information for Beijing. The Associated Press subsequently reported the allegation, while Reuters described her as an alleged Chinese spy. Singapore's Government has denied conducting an investigation into her alleged intelligence links. The allegations have not been independently verified.

Separately, US authorities have scrutinised Megaspeed over suspicions that it helped Chinese customers obtain advanced Nvidia chips in possible breach of export restrictions. No public finding has established an export-control violation.

Nvidia's board announced an independent investigation on 8 November into reports that Huang had been targeted by a foreign intelligence effort. The board said it had no reason to believe national security or Nvidia's trade secrets had been compromised. Huang supports the review and has committed to cooperating, it said.

Burry's AI Concerns Extend Beyond Nvidia

Burry's criticism forms part of a wider scepticism about the AI investment boom. His previous commentary has questioned the scale of infrastructure spending, circular financing and accounting practices across the industry.

In an 11 October Substack post, Burry said he had rolled most of his options positions into put options on the Nasdaq-100 Index and the VanEck Semiconductor ETF (SMH). The fund tracks an index of US-listed semiconductor companies and includes Nvidia, AMD and Taiwan Semiconductor Manufacturing among its holdings. The disclosure does not establish whether he still holds those positions.

His latest comments leave a distinction between a possible near-term trade and his longer-term doubts about Nvidia's ability to defend its position in the AI chip market.