#BigShortBurryBearsAI

Michael Burry is increasing his bets against Nvidia and other companies like Palantir, Oracle and the SOXX semiconductor ETF. He is also keeping his bet against Tesla the same. Michael Burry thinks that Nvidia is getting a lot of its business from financing deals that are not clearly shown in their accounts than from real customers who are buying their products.
He points to a report from the Bank for International Settlements to support his claim. This means that one of the well-known critics of the market is going against the popular idea that artificial intelligence is driving the market.
The question is whether the demand for Nvidias products is real or if it is being artificially supported by these financing deals. Michael Burry is not talking about how money Nvidia is making right now but rather if their orders are sustainable in the long term.
He is wondering if the current demand is real or if it is being inflated by financing structures that could change later. The reference to the Bank for International Settlements report is meant to show that this is not just his opinion but based on institutional analysis.
If we look at the chart for Nvidia we can see that the stock is trading near 224, which's a recovery from the lows in July. The price is above the 50-period and 200-period moving averages, which's a good sign. There is some resistance around 225-226. The overall technical picture is positive.
This is a clash between two time frames. The short interest from Michael Burry does not necessarily mean the stock will go down in the term but it does highlight the debate about the quality of demand. The chart for Nvidia shows that the stock is recovering and gaining momentum. Michael Burry is skeptical about the long-term durability of the artificial intelligence spending cycle.
The tension between these two time frames will be resolved by earnings reports, financing disclosures and order trends. I think that Michael Burry increasing his bets against these companies is a data point, rather than a signal to buy or sell.
The argument about off-balance-sheet financing is specific. Can be tested over time. The chart for Nvidia shows that the stock is above the rising moving averages, which's a good sign with the 225-226 area as the next test and the 217-209 zone as support.
In the end Michael Burry has increased his bets against Nvidia, Palantir, Oracle and SOXX while keeping his bet against Tesla the same. He thinks that Nvidias demand is being supported by financing deals than real customer orders. The chart for Nvidia shows that the stock is testing the 224 area with momentum indicators.
The challenge to the intelligence narrative and the technical recovery are happening at the same time. Later data, on demand and financing structures will determine which side of the debate wins. This is my reading of the situation and not a recommendation.
‍#MichaelBurry #Nvidia #AINarrative