Michael Burry has disclosed a short position against Nvidia ahead of the chipmaker's fiscal Q2 2027 earnings on Wednesday, part of a broader short book that also covers Micron, Oracle, Nebius, and two index funds. The Scion Asset Management founder is simultaneously long Lululemon, which he called "screaming cheap," while declining to short Apple despite its rich valuation.
Michael Burry is heading into Nvidia's most consequential earnings report of the AI cycle positioned against the stock. NVIDIA 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, laying out a short book aimed squarely at the AI trade.
Burry's short book spans the AI capex complex
Burry has publicly discussed short positions involving Nvidia, Micron Technology, Oracle, Nebius, the iShares Semiconductor ETF, and the Invesco QQQ Trust. That spread covers the GPU designer, the memory supplier, the hyperscale software partner, the neocloud, and the two index vehicles most exposed to the AI 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 figure that excludes any Data Center compute revenue from China.
Wall Street is not with him on the long side either
The centerpiece of Burry's long book is Lululemon, which he told Substack readers he considers screaming cheap. According to Stocktwits reporter Prabhjote Gill, a reader in the Substack chat observed that Burry appeared to have nearly doubled his Lululemon position, which now accounts for 17.4% of his holdings versus 9% for Molina Healthcare.
Yet 29 of the 34 analysts covering Lululemon rate it a Hold, with one at Buy, and the average price target sits at $127.92, per Koyfin data cited by Stocktwits. Burry has previously pointed to Lululemon's tangible book value per share, which he said doubled from roughly $20 to $40 over three years, and compared the market's treatment of the stock to GameStop in 2019.
Apple stays off the short list
Burry was asked when he might short Apple and declined. His comment: "It is like Costco. Once in a blue moon I take my chances." Apple closed Friday at $309.35, up 38.06% over one year and up 14.10% year to date, and last reported nine consecutive EPS beats, with Q3 FY26 EPS of $2.02 on revenue of $109.42 billion.
Two days before Nvidia reports, the put/call ratio across its full options chain sits at 0.60, while the December 2026 expiration sits above 1.29, pointing to heavier put positioning further out on the calendar. Wednesday's release lands directly into that setup.
Source: 24/7 Wall St. (via Yahoo Finance)
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