"The Big Short" Burry Targets Nvidia (NVDA.US) Again: Criticizes Jensen Huang for Resembling Palantir CEO Karp, $150 Billion Buyback Raises Doubts

According to Zhitong Finance APP, Michael Burry, the well-known skeptic of Nvidia (NVDA.US) and the broader AI infrastructure hype, has once again criticized the chipmaker, likening CEO Jensen Huang to Palantir CEO Alex Karp. Burry, who is famous as the prototype of the movie "The Big Short" for accurately predicting the 2008 subprime crisis, is currently holding Nvidia put options, which will profit if the stock price falls. Jensen Huang is currently making intensive media appearances.

Later on Monday, during a chat post on his Substack page, a user commented on Jensen Huang's recent spate of media exposure. Burry replied, "He’s becoming a bit like Karp on this front."

Karp often appears on television interviews discussing AI, Palantir, and the broader tech industry. Huang’s current media offensive comes as some investors express concerns over Nvidia’s valuation and the so-called cycle of financing within the AI sector.

Nvidia’s $150 Billion Buyback Plan Draws Attention

Burry’s comments come as Nvidia expands its stock buyback plan. On Monday, the company’s board approved an additional $150 billion in stock repurchase authorization, bringing the total remaining authorization to $235 billion.

Nvidia is expected to execute the plan by fiscal year 2028. The company stated that this increase marks the largest single stock buyback authorization in history. Previously, Nvidia had approved an $80 billion buyback authorization in May. According to the latest filings, Nvidia repurchased $39.8 billion worth of shares just in the first half of fiscal 2027.

In Burry’s chat group, a user questioned the rationale of repurchasing stocks during what they described as a "crazy market," arguing that when stock valuations are high, management should preserve cash, and when the share price is undervalued, more aggressive buybacks would make sense.

Burry generally agreed with this view but noted, "Yes, this approach is currently more common overseas than in the United States. In the US, buybacks have become almost a routine regardless of market level."

A Straightforward Critic

Burry has long been skeptical of Nvidia and the broader AI trade, repeatedly questioning the investment logic behind AI and suggesting that massive capital expenditures won’t necessarily translate into sustainable returns. He has frequently warned that surges in AI spending and lofty valuations resemble a "bubble," raising doubts over the sustainability of large-scale AI infrastructure investments and voicing concern over aggressive enterprise spending on Nvidia GPUs, while criticizing market frenzy for AI-driven growth.

Burry’s shorting of US AI stocks began with put options on Nvidia (NVDA.US) and Palantir (PLTR.US) in the third quarter of 2025, with a notional value of about $1.1 billion. By 2026, this short strategy expanded to cover the entire chain of semiconductors, memory, and AI infrastructure, including bearish bets on Micron Technology (MU.US), Oracle (ORCL.US), Nebius (NBIS.US), and the iShares Semiconductor ETF (SOXX).

Recently, Burry closed his concentrated short positions in Nvidia, Palantir, Micron, Nebius, and other AI-related stocks, replacing many with put options expiring in 2027.

He stated that new research prompted him to bring forward his bearish timeline, and that "most" of his portfolio reshuffle was based on his view that the AI bubble could burst "sooner than expected."

Recently, Burry noted that the success of the current artificial intelligence (AI) industry is now as crucial to the US government as it is to the tech giants driving this boom. Although he remains bearish on several key companies central to the AI trade, he acknowledged that building AI infrastructure has become a key pillar supporting the US economy.

On Stocktwits, retail sentiment towards Nvidia remains "bearish," unchanged from last week, with some users discussing the latest buyback authorization.

One trader wrote: "There’s so much good news about Nvidia, it wouldn’t make sense if the stock doesn’t climb sharply in the near term." Another commented: "Nvidia should just be grateful to be up today. This is exciting news. Keep holding."

As of the last close, Nvidia’s share price has risen 23% year-to-date.