Burry Sees Red Flags in Nvidia's Price as Earnings-Driven Rally Faces Reckoning
Michael Burry, a well-known investor and hedge fund manager, has expressed concerns about Nvidia's (NVDA) valuation. In an August 26th Substack post, he revealed that he had purchased December call options with strike prices in the mid-to-high $200s, paying single-digit premiums.
The disclosure came after Nvidia's latest quarterly results exceeded Wall Street estimates. The company provided a long-term outlook calling for roughly 70% growth through fiscal 2028, but Burry argued that its current valuation does not align with the prevailing market view.
Burry also estimated Nvidia's intrinsic value to be below its current market value and raised concerns about future shareholder distributions and potential pressure on earnings as AI investment expands.