Michael Burry Bets Nvidia Will Drop Below $115 by 2027
Michael Burry profits if Nvidia's stock price falls below $115 by January 27, 2027. He purchased put options with a strike price of $115 at a cost of $3.30 each. This position takes a bearish view of the semiconductor company, despite valuation models that suggest the stock is undervalued. GuruFocus estimates Nvidia's fair value at $307.28, meaning shares were 38.6% undervalued at the time of the trade. The company's trailing twelve months P/E ratio of 38.5x is lower than its five-year equação a five-year median of 62.26x. Insiders have sold $216.9 million in shares over the past three months. No insider buying has occurred. The trade is a bet that market dynamics or AI-driven expectations will force a correction below $115.
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