Michael Burry, the investor behind The Big Short, has expanded his short bets against major AI and infrastructure stocks including Nvidia and Palantir while increasing his investment in Molina Healthcare at $198 per share.
Burry contends that Nvidia's $500 billion financing platform for AI projects recreates the risky debt dynamics that preceded the 2008 financial crisis, while he believes Molina Healthcare is deeply undervalued despite a 54% decline from its March 2024 peak.
What happened
Michael Burry, the investor famous for The Big Short, added to his short positions in Nvidia, Palantir, Oracle, and Caterpillar while increasing his stake in Molina Healthcare at $198 per share. He raised his Nvidia bets through put contracts expiring in December 2026 and June 2027 with strikes in the low $100s.
Why it matters
Burry argues Nvidia's $500 billion financing platform for AI projects mirrors the risky debt dynamics that fueled the 2008 financial crisis, now centered on the AI boom. He views Molina Healthcare as significantly undervalued—the stock has fallen 54% from its March 2024 peak of more than $419—and compares its long-term potential to Geico before Berkshire Hathaway's investment transformed it.
What to watch
Molina Healthcare was trading around $200 at publication after Burry brought his position back to the size of his largest holdings. His Nvidia puts expire in December 2026 and June 2027, making those dates key markers for how his bearish AI infrastructure thesis plays out.
Michael Burry, the investor immortalized in The Big Short for his prescient call on the 2008 housing crisis, is placing large bets on opposite sides of the market in his latest portfolio moves. In a post on his Substack newsletter Cassandra Unchained, Burry disclosed that he has added to his short positions across several major stocks: Nvidia, Palantir, Oracle, and Caterpillar. Simultaneously, he increased his long position in Molina Healthcare, a healthcare company he has championed for years as deeply undervalued.
Burry added to his Molina Healthcare holdings at $198 per share, bringing the investment back to the size of his largest positions overall. He wrote: "Molina is now more on par with my largest positions again. I believe in Molina long term, and feel the political season may be shaping up as a good one for the company, which would be a nice surprise." Molina's stock has faced significant headwinds, falling 54% from its March 2024 peak of more than $419 and at one point dipping near $140. At the time of publication, shares were trading around $200. Burry has long argued that Molina is significantly undervalued and has compared its potential to Geico, the auto insurer in which Berkshire Hathaway invested before it became an industry leader.
On his short side, Burry increased his bearish bets on Nvidia through put contracts—which give him the right to sell shares at a predetermined price—expiring in December 2026 and June 2027 with strikes in the low $100s. This approach allows him to express a bearish view while limiting his potential losses, in contrast to shorting shares outright. Burry's critique centers on Nvidia's $500 billion financing platform for AI projects, which he has characterized as recreating the risky debt dynamics that fueled the 2008 financial crisis, now pivoting toward the AI boom. This structural concern appears to be driving his conviction that AI infrastructure leaders, particularly Nvidia, are vulnerable to a significant drawdown.
Burry's latest moves reveal a striking split in his conviction: deep skepticism about the valuation and financing structure of AI infrastructure leaders, coupled with confidence in a beaten-down healthcare stock most investors have overlooked. His comparison of Molina Healthcare to Geico—before Berkshire Hathaway's pivotal investment—signals that he sees the company trading below its intrinsic value, particularly as he notes the political season may favor it. The stock's 54% fall from its March 2024 high suggests the market has priced in significant headwinds, creating what Burry views as an asymmetric opportunity.
On the short side, Burry's concern about Nvidia's $500 billion financing platform touches on a structural vulnerability in the AI boom: the debt mechanics underlying infrastructure investment. By using put contracts rather than direct short selling, Burry caps his downside while maintaining exposure to a decline—a disciplined approach that acknowledges execution risk in timing. His December 2026 and June 2027 expiration dates suggest he is willing to wait years for his thesis to materialize, indicating conviction but not urgency.
AI-summarized, only the topics you pick — one digest a day via Email, Slack, or Discord.
Free · takes 30 seconds · unsubscribe anytime
Ask AI anything about this article. Q&As are published on this page for other readers too.
IREN shares jumped 9.86% on Wednesday, following strong quarterly results from competitors CoreWeave and Nebiu…
Super Micro Computer (Nasdaq: SMCI) announced it will participate in three upcoming investor conferences: the…
Nebius jumped 30.5% and CoreWeave rose 19.44% today after reporting strong earnings
Cerebras Systems raised its 2026 adjusted revenue forecast to $880 million–$890 million (from $855 million–$86…
CloudSEK identified more than 2,500 organisations potentially exposed by a March 2026 LiteLLM incident, an ope…
A survey of 215 breast imaging specialists found that about half already use FDA-approved AI tools for detecti…
The AI news that matters, in one minute each morning.
Sign up free