"Big Short" Burry subtly warns: Sometimes we see bubbles, the only winning move is not to play

Amid growing skepticism in the market regarding the boom in artificial intelligence, "big short" Michael Burry recently warned retail investors that "sometimes we see bubbles."

On Friday, Burry posted this seemingly cryptic warning on social media platform X, stating that sometimes we see bubbles, sometimes there are things to do, and sometimes the only winning move is not to play. However, he did not specify what he meant by "bubbles."

Previous holding documents show that his Scion Asset Management liquidated almost all of its listed stocks in the first quarter of this year while establishing a short position against NVIDIA.

The 54-year-old fund manager is known for his cautionary comments on the market and economy. His shorting of mortgage trades in the late 2000s was adapted into the film "The Big Short," making him a household name.

As Burry's warning comes, the soaring stock prices of a few tech companies, represented by NVIDIA, have drawn market attention. NVIDIA became the first company this week to surpass a market capitalization of $5 trillion, with its market value currently accounting for nearly one-tenth of the S&P 500 index, exceeding the GDP of India, Japan, and Germany.

According to the 13F regulatory filing released on May 16, Burry's Scion Asset Management liquidated almost all of its stocks in the first quarter of 2025, retaining only its position in Estée Lauder. Meanwhile, the fund purchased put options on NVIDIA.

The regulatory documents specifically note that these put options on NVIDIA and other companies "may be used to hedge long positions that do not need to be reported in the 13F." This disclosure leaves room for interpretation regarding Burry's short position