Burry Scores Big on Nvidia and Microsoft Trades Despite Remaining Bearish

Michael Burry has revealed his successful trades on Nvidia and Microsoft ahead of their earnings reports. He thanked tech columnist Tae Kim for praising him for making 'a killing' on the calls, saying they 'did their job.' However, he remains bearish on both companies in the long term.

Burry's Nvidia position was a short-lived hedge, as he had already sold half of his call position within 24 hours after opening it, locking in a 50% to 60% gain. He acknowledged that there was 'little standing in the way of further stock appreciation' in the near term.

His Microsoft calls, on the other hand, were a longer-term bet. He purchased them expiring on Dec.15, 2028, with strikes in the low $700s when Microsoft traded at around $350. The company's fourth-quarter results exceeded expectations, and its stock surged more than 15% in the next session.

Burry remains bearish on the AI capex trade, warning of potential 'shocking reductions in earnings' when AI spending slows down. He has called Nvidia 'wildly undervalued,' but expects the company to keep investing into and through the top of the bubble.