Nvidia’s Double Act: Vera Rubin Ramps Up Production as Michael Burry Bets Against the Chipmaker
Published on 07/03/2026 at 11:12 | Redaktion boerse-global.de
The man who made a fortune shorting the U.S. housing market in 2008 is now taking aim at the king of AI chips. Michael Burry’s Scion Asset Management has disclosed a short position against Nvidia, betting that the semiconductor giant’s blistering run is about to hit a wall. According to filings from July 1 to July 3, Burry opened the trade at around $198 per share.
The wager lands in a market already on edge. June’s U.S. jobs report showed just 57,000 new payrolls – far below the 110,000 economists had penciled in. The miss triggered a rotation out of technology stocks into defensive sectors like healthcare, utilities and consumer goods. The Dow Jones climbed to fresh records above 52,000 points, while AI names sold off. Nvidia closed Thursday at €170.58, a drop of 15.76% from its 52-week high of €202.50 set in May. Over the past 30 days, the stock has shed nearly 8%, though it still trades roughly 26% higher year-over-year.
Burry draws parallels to the dot-com era, warning of overcapacity in the AI space. His bearish stance is not a fringe bet – it cuts straight to the heart of a sector that has powered much of the recent market rally.
Nvidia, however, is not sitting still. The company’s next-generation system architecture, code-named Vera Rubin, has entered series production. CEO Jensen Huang is positioning it as the backbone for what the firm calls “accelerated AI factories” – vast data centres designed to run at full capacity around the clock for multiple customers. To fund that build-out, Nvidia is rolling out a new revenue-sharing model for cloud providers. Instead of just selling chips, the company will let partners take a cut of the infrastructure’s earnings in exchange for upfront capital.
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The strategy comes as some big customers explore alternatives. Anthropic is reportedly working with Samsung Foundry on custom 2-nanometer AI chips, an attempt to reduce reliance on Nvidia’s dominant accelerators, which still control over 70% of the market. Meta Platforms, meanwhile, is said to be considering selling or leasing excess data-centre capacity – a move that could cool near-term demand for new GPU clusters.
Nvidia is also putting capital to work in the cloud ecosystem. It participated in an $800 million funding round for Together AI, a GPU-cloud startup focused on open-source models, at an $8.3 billion valuation. And on the executive front, the chipmaker poached Nicholas Parker from Microsoft, where he spent 26 years, to become executive vice president of worldwide field operations, effective August 24. He replaces Jay Puri, who is retiring after 21 years.
The stock’s technical picture reflects the uncertainty. The 14-day relative strength index sits at 41.7, signalling weak momentum. Shares are trading 5.92% below their 50-day moving average of €181.32, but remain just under 4% above the 200-day line. On a fundamental basis, the valuation is more forgiving: Nvidia fetches a forward price-to-earnings ratio of 20 to 22 over the next twelve months, well below its five-year average of 53 and the sector median of 34. The PEG ratio stands at 0.49 against an expected earnings growth rate of 81%, leading some analysts to argue the stock is showing value characteristics despite the bubble warnings.
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For the fiscal second quarter, analysts forecast revenue of $91.73 billion, a 96% jump from a year earlier. The board has also authorised an $80 billion share buyback programme – a vote of confidence in long-term cash generation. Whether that will be enough to silence Burry’s bet will become clearer when quarterly results land. For now, Nvidia is pressing hard on two fronts: scaling its next-generation hardware and reshaping how it gets paid for it.
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