Michael Burry Is Shorting Nvidia Heading Into Earnings, Here’s What He’s Buying Instead

Burry called LULU "screaming cheap," doubling his stake to 17.4% of his portfolio while shorting NVDA at a $5.2 trillion valuation.

Burry's short book extends to QQQ and SOXX, but he refuses to short AAPL, calling it "permacostly" despite its rich valuation.

With 29 of 34 analysts rating LULU a Hold, Burry's contrarian bet on its forward P/E of 11 stands nearly alone on Wall Street.

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Michael Burry is heading into the most important earnings report of the AI cycle positioned against it. NVIDIA ( NASDAQ:NVDA ) reports fiscal Q2 2027 results on Wednesday, Aug. 26, 2026, after the market close, and the Scion Asset Management founder spent the weekend on his Substack, Cassandra Unchained , defending a very different kind of stock. His comments were reported by Stocktwits reporter Prabhjote Gill on Monday, Aug. 24, 2026.

These were self-disclosures in a paid Substack chat, made in the days leading up to the single biggest quarterly release on the calendar for the AI trade. Riding a mania is one thing and planning the exit is another, which is exactly what we walked through in a free bubble survivor's handbook.

Burry has publicly discussed short positions involving Nvidia, Micron Technology, Oracle, Nebius, the iShares Semiconductor ETF and the Invesco QQQ Trust. That spans the AI capex complex, from the GPU designer to the memory supplier, the hyperscale software partner, the neocloud, and the two index vehicles most exposed to the theme.

Nvidia enters the report richly valued and richly expected. The stock closed Friday at $214.72, giving the company a market capitalization of roughly $5.2 trillion at a trailing P/E of 33. Last quarter, Nvidia posted revenue of $81.61 billion, up 85.23% year over year, with Data Center revenue of $75.25 billion and non-GAAP gross margin of 75.0%. Management guided Q2 to $91.0 billion, plus or minus 2%, a number that excludes any Data Center compute revenue from China. The full Q1 FY27 release is on file with the SEC.

The centerpiece of his long book is Lululemon ( NASDAQ:LULU ). Burry wrote on Substack, "I believe LULU is screaming cheap here."

A reader in the Substack chat observed that he appeared to have nearly doubled his LULU position, and that it now accounts for 17.4% of his holdings versus 9% for Molina Healthcare, after adding to both. Tracking of his Substack disclosures also suggests larger long positions in Zoetis, MercadoLibre, JD.com and Adobe. Burry has said he moved his Alibaba position entirely into JD.com and would need Alibaba to fall by half before reconsidering.