Tag: michael burry

CNBC Daily Open: SoftBank doubles down on AI amid warnings from ‘Big Short’ investor

SoftBank Sells Entire Stake in Nvidia — But Not for the Reasons You Might Think

In its earnings statement released Tuesday, SoftBank revealed that it had sold 32.1 million Nvidia shares in October for $5.83 billion. At first glance, this move might suggest that SoftBank is growing uneasy with Nvidia’s high valuations. Given SoftBank’s history—most notably its $18.5 billion investment in WeWork that eventually valued the company at only $2.9 billion—some investors might interpret this sale as a sign of the group tempering its usual optimism.

Adding to concerns around AI investments are recent comments by Michael Burry, the investor famous for betting against subprime mortgages before the 2008 financial crisis. On Monday, Burry posted on X that major artificial intelligence companies are “understating depreciation” of AI chips, which “artificially boosts earnings—one of the more common frauds of the modern era.” However, CNBC could not independently verify whether companies are engaging in such practices.

SoftBank’s Reason Behind the Nvidia Stake Sale

Despite the speculation, this does not appear to be SoftBank’s concern. A person familiar with the group’s sale told CNBC that the decision had nothing to do with AI valuations. On the contrary, the cash from offloading Nvidia shares will be redirected towards bolstering SoftBank’s $22.5 billion investment in OpenAI, according to the source.

Michael Burry promised to reveal “more details” on November 25 and encouraged readers to “stay tuned.” Whether this will influence SoftBank’s outlook remains to be seen.

Market Highlights

– The Dow Jones Industrial Average closed at a fresh high on Tuesday.
– The S&P 500 also rose, while the Nasdaq Composite retreated as investors rotated out of tech stocks.
– Europe’s Stoxx 600 rallied 1.28%, with the UK’s FTSE 100 hitting a record high.

Other Notable Developments

– **SoftBank also sold part of its stake in T-Mobile**, continuing its portfolio adjustments.
– **AMD forecasts strong growth**, with CEO Lisa Su projecting 35% annual revenue growth over the next three to five years, driven by “insatiable” demand for AI chips. The company also anticipates gross margins between 55% to 58%, surpassing analyst expectations.
– **U.S. trade update:** At the swearing-in ceremony of U.S. Ambassador to India Sergio Gor on Monday, President Trump hinted at possible tariff reductions, stating that he “will be bringing the tariffs down.” The White House is also reportedly working with Switzerland on a deal to lower tariffs.
– **Pop Mart shares surge:** The Chinese firm’s shares have risen more than 270% year to date, fueled by the popularity of its Labubu dolls. However, Bernstein analysts caution that it might be time to “stop collecting” Pop Mart stock.

Contributors: CNBC’s Yun Li, April Roach, and Dylan Butts.

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This strategic repositioning shows SoftBank’s confidence in AI’s future potential, particularly through its significant investment in OpenAI, even as it moves away from direct Nvidia holdings.
https://www.cnbc.com/2025/11/12/cnbc-daily-open-softbank-doubles-down-on-ai-amid-warnings-from-big-short-investor.html

Big Short Investor Michael Burry Breaks Silence to Warn of Market Bubble

**Michael Burry Issues First Market Warning Since April 2023, Cautions of Possible Bubble but Stays on Sidelines**

Michael Burry, the investor renowned for predicting the 2008 housing crisis, has made his first public statement since April 2023. On October 31, 2025, Burry posted a cryptic warning on X about a potential market “bubble,” while indicating he sees no clear way to profit from it.

His post read:
“Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
This quote references the 1983 movie *Wargames*, suggesting Burry recognizes risky speculation in the market but is choosing not to bet against it.

### “Cassandra Unchained” – A New Moniker with a Message

Burry also changed his X profile name to **“Cassandra Unchained.”** This nods to the Greek mythological figure Cassandra, who was cursed to make accurate predictions that nobody believed. The choice reflects Burry’s reputation for making accurate yet initially dismissed warnings.

### The Legacy of Michael Burry

Burry gained fame by predicting the collapse of the U.S. housing market before the 2008 financial crisis. He thoroughly analyzed subprime mortgages and used credit default swaps to short the housing sector. His foresight earned billions for his investors and was immortalized in the book and film *The Big Short*.

### What Bubble is Burry Warning About?

Unlike his previous clear identification of the housing bubble, Burry has not specified which market sector he is concerned about this time. Market observers speculate he may be referring to the technology sector, particularly the rapid rise of artificial intelligence (AI) investments.

Companies have invested hundreds of billions of dollars into AI infrastructure and data centers. For example, Nvidia’s market capitalization surpassed an astonishing $5 trillion as of October 29, 2025—exceeding the GDP of major economies like India, Japan, and Germany. This surge is largely driven by soaring demand for AI chips.

### Burry’s Current Market Position: Staying on the Sidelines

Unlike his famous housing market short, Burry is not betting against the market now. Instead, he appears to be taking a defensive, “wait and see” approach.

Throughout 2025, Burry’s Scion Asset Management has shown a shifting strategy:
– In Q1 2025, the firm liquidated nearly all its holdings, ending March with just seven positions. These included bets against Alibaba, JD.com, and Nvidia, plus shares in Estée Lauder.
– By the end of June, the portfolio expanded to 15 positions with call options on companies like Alibaba, Meta, ASML, UnitedHealth, Regeneron Pharmaceuticals, and Lululemon. Estée Lauder remained the only consistent holding throughout the year.

Burry’s upcoming 13-F filing, due in about two weeks, will reveal his holdings through the end of September 2025. His recent message suggests he may continue to adopt a cautious stance moving forward.

### Market Performance and AI Concerns

U.S. stock markets have performed strongly in 2025:
– The S&P 500 gained nearly 16% year-to-date.
– The Dow Jones Industrial Average rose 11.7%.
– The Nasdaq 100 surged 24.3%.

Tech companies have seen varied third-quarter earnings reactions. Meta and Microsoft stocks retreated following disappointing reports, while Amazon and Apple bounced back with strong earnings, lifting the indexes again.

Amid this, some investors worry about how AI expansion is being funded. Meta recently announced a $30 billion financing package for its Hyperion data center in Louisiana, utilizing a special purpose vehicle to keep debt off its balance sheet. The company is also reportedly considering an additional $25 billion bond sale, with a prospectus filed with the SEC.

### Final Thoughts

Michael Burry’s warning emerges amid growing debate over whether the AI-driven tech stock surge reflects genuine progress or inflated valuations. His decision to hold a defensive position — effectively sitting on the sidelines — suggests he sees significant risk but no clear opportunity to capitalize on right now.

Investors will be closely watching Burry’s next 13-F filing for clues on whether he maintained this cautious posture through the third quarter of 2025.
https://coincentral.com/big-short-investor-michael-burry-breaks-silence-to-warn-of-market-bubble/

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