Hedge fund manager Michael Burry holds short positions in Nvidia, Palantir, and Tesla, citing concerns over AI infrastructure spending.
Hedge fund manager Michael Burry has taken short positions in Nvidia (NVDA), Palantir (PLTR), and Tesla (TSLA), reflecting skepticism about sustained AI-driven spending. Burry argues hyperscalers may cut back on AI infrastructure investments, potentially slowing revenue growth for key beneficiaries like Nvidia.
Nvidia, the leading supplier of AI GPUs, has seen surging demand as companies like Alphabet increase capital expenditures. Alphabet recently raised its 2026 spending forecast and projected higher outlays for 2027. Meanwhile, Taiwan Semiconductor Manufacturing (TSMC) is expanding fab capacity to meet chip demand, signaling long-term confidence in the sector.
Despite Burry’s bearish stance, the article suggests Nvidia remains a buy due to its valuation and market position, while Palantir is recommended as a hold and Tesla as a sell.