The End Is Nigh? How Investors Should React to ‘Big Short’ Michael Burry
Burry has been way off at times, but not always. How should investors interpret his latest call?
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Recently, I’ve noticed some folks making sport of hedge fund manager Michael Burry. Burry, recently head of Scion Asset Management, made the infamous call to short the subprime mortgage market prior to the crash of 2008, as depicted in the film The Big Short.
One sarcastic meme, currently making the rounds on social media, jokes that Burry has predicted 50 of the past two bear markets.
Burry embraces his bearishness. His handle on social media site X is Cassandra Unchained, a reference to the mythological character who was given the gift of foresight, but was also cursed to be ignored.
Now Burry is making a new call. Referring to the valuations of AI infrastructure and semiconductor stocks, he recently posted the following on his Substack:
“The end is nigh. Dancing with the devil in the pale moonlight.”
A Mixed Bag
Lately, Burry’s calls have been erratic. Three years ago, he made a disastrous decision to short the S&P 500 (arrow). Since that call in August 2023, the large-cap index has gained about 66%.
More recently, in early November 2025, he shorted Nvidia (NVDA) and Palantir (PLTR). This was a pretty good call. Since then, shares of Palantir (left chart) have lost over 30%, while Nvidia (right chart) has lost about 5%.
(We closed our Palantir position in February after a gain of 246%. Here’s why).
Burry’s Latest Short Positions
Clearly, Burry has been way off at times, but he’s not always wrong. How should investors interpret his latest call?
Burry recently revealed short positions in several stocks we are currently long: Micron (MU), Tesla (TSLA), and Nvidia.
Micron has gained 218% year-to-date, and has climbed 738% over the past 12 months. This stock has been soft since completing an A-B-C-D pattern in late June. Here’s our latest price target for Micron.
Tesla has been volatile, but the stock hasn’t gone anywhere. Year-to-date, shares of the EV automaker and robotics company are down by 4%. Tesla has been rangebound since last fall.
Nvidia has formed a bearish rounded top. Its shares are gamely remaining above its 200-day moving average (red). This stock reached an all-time high in May (arrow).
We trimmed half of our Nvidia position in November, when the shares were trading near $180.
The Party Isn’t Over
We’re not selling any shares due to Burry’s comments, but we’re not ignoring him either.
Independent of his analysis, we closed one long position that he shorted (Palantir), and trimmed half of another (Nvidia). We even closed a small portion of our Micron position, which he’s also shorting.
Think of this market as a party. Most of the partiers are having a good time, as the bull market continues.
Am I going to leave the party because of Burry’s warning? No, I’m going to refresh my drink and party on.
However, you can bet that every once in a while, I’m glancing over my shoulder to check where the nearest exits are located. Not because of Burry, but because that’s what all traders must do from time to time.
At the time of publication, Ponsi was long MU, NVDA and TSLA.
