According to BeInCrypto, “big short” investor Michael Burry increased his short position before Nvidia announced its earnings, while also buying Nvidia call options expiring in December this year with a strike price in the mid-$200 range as a hedge. Michael Burry stated that this option is not a bet on the stock price rising, and its cost can be covered by existing short and put option positions.

Michael Burry believes that Nvidia’s low price-to-earnings ratio may mask the valuation risks associated with its short-term monopoly position, and his own estimated theoretical value is significantly lower than the current market price; at the same time, he is concerned that the company will continue to expand capital expenditures, which may face earnings downgrade pressure after the peak of the AI investment cycle. In addition to Nvidia, Michael Burry has also newly established or increased short positions in Oracle, Palantir, Nebius, and Caterpillar, with his stock short positions accounting for over 21% of his portfolio (excluding put options).