--- title: "Michael Burry Bets Against Nvidia, Says'I Do Not See How That Math Works' Amid AI Chip Boom Fears" description: "Investor Michael Burry is betting against Nvidia, citing concerns over the sustainability of the AI chip boom. He believes Nvidia's reliance on hyperscaler spending is risky, stating that the projecte" type: "news" locale: "en" url: "https://longbridge.com/en/news/272531555.md" published_at: "2026-01-14T09:11:22.000Z" --- # Michael Burry Bets Against Nvidia, Says'I Do Not See How That Math Works' Amid AI Chip Boom Fears > Investor Michael Burry is betting against Nvidia, citing concerns over the sustainability of the AI chip boom. He believes Nvidia's reliance on hyperscaler spending is risky, stating that the projected $400 billion in chip sales contrasts sharply with the less than $100 billion in application layer use cases. Burry avoids shorting other big tech firms like Meta and Microsoft, as they have strong core businesses. He also warns of potential energy shortages impacting AI innovation and urges for a nuclear power expansion to meet rising electricity demands. Investor **Michael Burry**, famed for predicting the 2008 housing crash, is now betting against **Nvidia Corp.** (NASDAQ:NVDA), warning that the AI-driven chip boom is vulnerable to a sharp reversal. ## **Burry Calls Nvidia ‘Purest Play’ On AI** In a Substack post over the weekend, Burry said he is shorting Nvidia because the chipmaker is "simply the purest play" on artificial intelligence and is dangerously reliant on hyperscaler spending. "I do not see how that math works," he wrote, adding that Nvidia could sell about $400 billion worth of chips this year while there are "less than $100 billion in application layer use cases." Burry said Nvidia is "the most loved, and least doubted," making it an attractive short because expectations leave little room for disappointment. ## **Why Burry Avoids Shorting Other Big Tech** Burry explained that betting against **Meta Platforms Inc.** (NASDAQ:META), **Alphabet Inc.** (NASDAQ:GOOG) (NASDAQ:GOOGL), or **Microsoft Corp.** (NYSE:MSFT) would mean wagering against their dominant core businesses. Shorting Meta would be "shorting its social media/advertising dominance," while betting against Microsoft would be "shorting a global office productivity SaaS goliath," he wrote. Those companies, Burry said, are not "pure shorts on AI" and could absorb losses if AI spending slows. He also warned of technological obsolescence at Nvidia, noting the company introduces new chip solutions every year or less, raising the risk of future writedowns. ## **Burry Warns On AI Spending, Tech Risks, Power Constraints** On Monday, Burry criticized Meta after Chief Executive Officer **Mark Zuckerberg** announced plans to sharply expand AI capacity, warning the company was abandoning its asset-light model for a capital-heavy strategy that could hurt returns. Burry said Meta was "throwing away its one saving grace" and cautioned that return on invested capital could fall as spending accelerates. Earlier, Burry also turned bearish on **Oracle Corp.** (NYSE:ORCL), saying he owned put options and had shorted the stock as the company expanded into cloud computing and took on more debt. Oracle shares were down about 40% from their September peak. Separately, Burry urged President **Donald Trump** and Vice President **JD Vance** to fast-track a $1 trillion nuclear power and grid expansion to meet rising AI-driven electricity demand. He warned that energy shortages could constrain innovation and economic growth, a concern echoed by **Futurum Group** CEO **Daniel Newman**, who said regulatory delays posed the biggest risk to sustaining the AI boom. ***Disclaimer*:** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.* *Photo: Michael Vi / Shutterstock* ### Related Stocks - [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md) - [NVDL.US - GraniteShares 2x Long NVDA Daily ETF](https://longbridge.com/en/quote/NVDL.US.md) - [07788.HK - XL2CSOPNVDA](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK - XI2CSOPNVDA](https://longbridge.com/en/quote/07388.HK.md) - [NVDY.US - YieldMax NVDA Option Income Strategy ETF](https://longbridge.com/en/quote/NVDY.US.md) - [NVDD.US - Direxion Daily NVDA Bear 1X ETF](https://longbridge.com/en/quote/NVDD.US.md) - [NVDX.US - T-Rex 2X Long NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDX.US.md) - [NVDQ.US - T-Rex 2X Inverse NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDQ.US.md) - [SOXL.US - Direxion Semicon Bull 3X](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Meta 擬部署「數百萬夥」Nvidia 晶片 進一步加強合作關係 | Meta 計劃在未來幾年內部署數百萬顆 Nvidia 的 Blackwell 與 Rubin GPU，進一步加強與 Nvidia 的合作關係。此舉將使 Meta 更多地使用 Nvidia 的 AI 處理器和網絡設備，預計將為 Nvidia | [Link](https://longbridge.com/en/news/276193053.md) | | Meta 加碼英偉達：未來數年部署數百萬顆芯片，首次採用 Grace CPU | 根據週二發佈的聲明，Meta 承諾將使用更多來自英偉達的 AI 處理器和網絡設備。同時，Meta 還將首次在其獨立計算機的核心部件採用英偉達的 Grace CPU。此次部署將涵蓋基於英偉達當前 Blackwell 架構，以及即將推出的 Ve | [Link](https://longbridge.com/en/news/276177748.md) | | 英偉達的股價能否逼近 400 美元？以下是收益可能標誌着大幅上漲開始的原因 | 英偉達的股票在今年一直停滯不前，但 Cantor Fitzgerald 的分析師 C.J. 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