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Nvidia (NVDA) stock lost roughly 4% on Tuesday, Nov. 4 after regulatory filings confirmed the Big Short investor is betting against the artificial intelligence (AI) behemoth.
According to the said filings, Michael Burry – through his hedge fund Scion Asset Management – has about $187 million worth of put options against NVDA.
While Nvidia stock inched down on Tuesday, it remains one of the blockbuster performers of 2025. At the time of writing, the semiconductor stock is up more than 130% versus its April low.
Nvidia Stock Remains a Great Long-Term Holding
Investors should note that Burry’s is a contrarian call on NVDA shares, not a consensus.
In fact, the “golden wave” of artificial intelligence could push the chipmaker’s valuation up to $8.5 trillion within the next few years – that’s what Loop Capital told clients in its latest research note.
According to the firm’s senior analyst, Ananda Baruah, the Blackwell ramp could double Nvidia’s unit shipments over the next 12-15 months.
Nvidia will continue to see exceptional demand as it remains at the “front-end of AI adoption,” he concluded. Baruah now has a $350 price target on the semiconductor stock.
Betting Against NVDA Shares Is Like Betting Against AI
Alex Karp – the chief executive of Palantir Technologies (PLTR) – also criticized Michael Burry for short selling NVDA stock in a CNBC interview on Tuesday.
“He’s actually putting a short on AI,” he argued, adding the idea as a whole is “bats--- crazy.” Note that the founder of Scion Asset Management has $912 million worth of put options against PLTR as well.
Nvidia shares are worth owning also because Microsoft (MSFT) has secured the U.S. government’s approval to ship its advanced chips to the UAE this week.
Note that the AI stock has historically delivered a whopping 8.27% return in November, which makes up for another great reason to own it here.
Nvidia Remains a ‘Buy’ Among Wall Street Firms
Wall Street analysts also disagree with Burry’s short bet on Nvidia stock.
The consensus rating on NVDA shares currently sits at “Strong Buy” with the mean target of about $230 indicating potential upside of roughly 15% from here.
