Michael Burry Bets Against Nvidia Even as It Trades Below Intrinsic Value

Michael Burry has taken a bearish position on Nvidia, buying put options with a strike price of $115 set to expire on January 27, 2027 — a move that anticipates a steep decline from the stock’s April 12, 2026 price of $188.63. This bet against the semiconductor giant comes even as valuation models suggest the stock is trading far below its intrinsic worth. GuruFocus estimates Nvidia’s fair value at $307.28, meaning the shares were undervalued by 38.6% at the time of the trade. The company’s current P/E ratio of 38.5x sits well beneath its five-year median of 62.26x, reinforcing the case for undervaluation. Nvidia’s fundamentals are robust: it holds a GF Score™ of 96/100, with perfect marks in financial strength, profitability, and growth. Yet over the past three months, insiders have sold $216.9 million in shares — no insider buying has occurred. While Burry increased his holdings in JD.com and initiated a new 6%-of-portfolio position in Alibaba, his Nvidia puts signal a belief that near-term market dynamics, sentiment, or overreliance on AI-driven expectations could force a correction well below current levels, even if the long-term value remains intact.