Michael Burry Remains Short NVDA, TSLA on AI Bubble Concerns

Investor Michael Burry is maintaining short positions in key artificial intelligence stocks such as Nvidia (NASDAQ: NVDA) and Tesla (NASDAQ: TSLA), expressing concerns over what he terms an "AI bubble." Burry's outlook suggests a potential for a severe market correction, drawing parallels to the 1987 crash, and points to rising market leverage as a contributing factor to potential instability. Total margin debt increased by 50% year-over-year in June, a level of leverage that can accelerate gains but also magnify downturns.

### Story Arc / How We Got Here Nvidia (NASDAQ: NVDA) shares have previously shown a year-to-date performance of 22%, with market observers noting a period of more subdued gains compared to earlier years. This dynamic continues to attract attention as the market assesses the sustained buildout of AI infrastructure. Burry's current stance reflects ongoing caution amidst this technological shift. Prior coverage can be found at /explore/nvidia-nvda-stock-performance-shares-up-22-ytd.

### $NVDA+WL Technical Analysis & Key Risk Watch

Nvidia (NASDAQ: NVDA) was last trading at $230.36, up 0.84% for the day, with an RSI14 of 53.7 and volume at 1.06x its 20-day average. Key levels to watch include resistance at $230.40 and support at $229.63. The stock is trading above its 50-day moving average ($210.57) and 200-day moving average ($196.68).

### Impact on Related Companies Burry's bearish outlook on AI stocks could cast a shadow over other technology companies heavily invested in or reliant on AI development and deployment. Companies like Palantir (NASDAQ: PLTR), which also saw a mention in Burry's short positions, may face increased scrutiny. The broader market sentiment driven by such high-profile calls can influence investor appetite for growth stocks.