Michael Burry Closes Bearish Options on Nvidia and Palantir, Trims AI Short Exposure

Michael Burry, the famed investor known for his successful bet against subprime mortgages, said he has closed his bearish options on Nvidia and Palantir that were set to expire in December 2026. Burry cited a desire to hold more cash as he assesses evolving market conditions this fall, according to a Sept. 11 report.

The move directly reduced one of the most closely watched short positions in the AI trade. Burry's largest short positions remain Oracle, Palantir and Nebius, followed by Nvidia and the iShares Semiconductor ETF. He previously built a sizable options-based short position in AI infrastructure, including $187 million in Nvidia put options as part of a roughly $1 billion AI bearish bet.

Burry noted that trimming the short does not mean he has turned bullish. One reason for closing the Nvidia puts was that premiums on short-dated puts decline rapidly when the stock does not fall. Nvidia shares have risen more than 15% so far in 2026, while Palantir shares have slipped 1.19%.

The move comes as market concerns persist over AI trade dynamics, including carry trades and massive fundraising that raise questions about whether AI revenues can keep pace with high growth expectations. Nvidia's latest earnings report, released in late August 2026, showed second-quarter revenue of $96.22 billion, up 105.8% year over year, with data center revenue up 117% and non-GAAP gross margin improving to 75.0%. The company guided third-quarter revenue to $108 billion. The report may have contributed to Burry's decision to pare back, though his broader bearish thesis on AI trade remains unchanged.