Is Nvidia in the Spotlight? What Burry Just Did Will Surprise You

Michael Burry, the guy who became famous for predicting the 2008 crisis before anyone else, has just made a move that has Wall Street on high alert.

The Movement

This quarter, Burry practically liquidated all his positions in U.S. stocks. The exception? Estée Lauder. But what's interesting is what he bought: put options on Nvidia. In other words, he's betting that the queen of AI will fall.

Why It Matters

Nvidia is not just any company:

• Surpassed $5 trillion in market valuation
• Represents almost 10% of the S&P 500
• It has been in a rally practically non-stop.

For Burry, this is exactly the kind of concentration that precedes bubbles. His phrase is clear: “Sometimes we see bubbles; the only winning move is not to play.”

What Does It Mean?

It's not that I'm saying the market will collapse tomorrow. But it does warn: when a stock comes to represent 10% of an index, the risks of short-term correction multiply, especially in sectors as volatile as AI.

The lesson: In times of extreme volatility, sometimes the best thing to do is to hold your position, not to play the market timing.