Michael Burry bets against Tesla, Nvidia in new AI bubble short positions - Investing.com

Prominent investor Michael Burry has initiated short positions against Tesla and NVIDIA, signaling concerns about a potential AI bubble. This move reflects growing skepticism about current market valu... Read original →

Michael Burry’s short positions on Tesla and NVIDIA aren’t merely bubble calls—they expose a dangerous decoupling between AI-driven semiconductor valuations and real-world monetization. Technically, any demand pullback would ripple through HBM supply chains, advanced packaging (like TSMC’s CoWoS), and memory ecosystems. Regulatory risks are compounding: U.S. export controls have already inflated NVIDIA’s compliance costs by over 30%, while Tesla’s FSD faces data-localization hurdles across Europe and Asia. Competitively, AMD and Intel are exploiting this uncertainty, pushing MI300 and Gaudi chips to clients seeking vendor diversification. Over the next 12–24 months, even if AI adoption continues, capital markets will punish companies that can’t translate GPU spending into tangible gross margin expansion—separating speculative narratives from sustainable business models.