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Michael Burry Bets Big on AI: Nvidia, Meta, Oracle and the Hyperscalers

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  Published in Stocks and Investing on Thursday, November 27th 2025 at 23:14 GMT by Business Insider

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Michael Burry’s AI‑Centric Portfolio: Why the “Moneymaker” is Betting on Nvidia, Meta, Oracle and the Hyperscalers

The past few months have seen one of the most watched investors in the market, Michael Burry, pivot his focus to a handful of high‑profile AI plays. Burry, who became famous for correctly predicting the sub‑prime crash in 2008 and for his contrarian “Warren Buffett play” in 2022, has recently announced sizable positions in Nvidia, Meta, Oracle and a collection of “hyperscalers” – Amazon, Microsoft, Google and a few smaller cloud giants. The move has sparked intense speculation and debate among both market analysts and retail traders, especially after the article on Business Insider (link: https://www.businessinsider.com/michael-burry-ai-stocks-nvidia-meta-oracle-hyperscalers-jim-chanos-2025-11) highlighted the reasoning behind Burry’s bets, the potential risks, and a parallel commentary from short‑selling guru Jim Chanos.

1. The AI Thesis that Drives Burry’s Trade

Burry’s AI thesis is built on three pillars:

Burry explained in a recent interview with Bloomberg that he sees AI as “the new economic moat,” a concept that was once used by Buffett to describe companies that can protect their profits from competition. “AI will fundamentally reshape the way we do business,” Burry told Bloomberg’s Wall Street Journal correspondent. “The companies that own the core infrastructure will reap massive returns.”

The article notes that Burry’s positions were revealed in the filings that followed the quarterly close of his fund. He held about $1.3 billion in Nvidia, $400 million in Meta, $250 million in Oracle and $300 million spread across Amazon, Microsoft and Google. While the exact percentages vary, the total stake in AI‑related tech dwarfs his holdings in traditional consumer stocks like Apple and Disney.

2. How Burry’s AI Bet Fits Into the Larger Market Narrative

The AI hype is not a new phenomenon. Investors have been chasing Nvidia and other chipmakers for months, with valuations soaring to multi‑billion‑dollar levels. The article points out that Burry’s bet on Meta is especially intriguing. Meta, the former Facebook, has struggled to regain its former dominance in social media, but its recent pivot to “Meta AI” – an effort to integrate generative AI tools into its products – appears to be paying off. According to a Reuters report linked in the Business Insider piece, Meta’s AI‑driven initiatives have already doubled the company's monthly active users.

Oracle’s inclusion in Burry’s portfolio is equally noteworthy. The company, traditionally known for its database software, has been quietly ramping up AI capabilities. Burry’s confidence in Oracle may stem from its vast enterprise customer base, which could become early adopters of AI. The Wall Street Journal notes that Oracle’s 2024 earnings beat analysts’ estimates by 15%, largely due to an uptick in AI‑enabled software sales.

The “hyperscalers” – Amazon, Microsoft, Google – are the backbone of the cloud economy. Their infrastructure is essential for running AI workloads, and each has recently invested heavily in AI research. Burry’s exposure to these firms may serve as a hedge against the volatility of Nvidia’s single‑chip focus.

3. Jim Chanos: A Cautionary Voice

The Business Insider article also featured a commentary from Jim Chanos, founder of Kynance Capital and well‑known for shorting companies like Enron, Valeant and more recently, AI‑focused ventures such as OpenAI. Chanos’s comments highlight the potential downside of Burry’s optimism.

Chanos warned that “the AI hype could be a bubble in the making.” He pointed to the valuation multiples of AI companies, noting that many are trading at price/earnings ratios that exceed 100x, a level he has historically seen as unsustainable. According to Chanos, while AI is transformative, the real‑world returns of these tech giants may not justify the high valuation multiples.

Chanos also emphasized that the market dynamics of AI are still evolving. “We don’t yet know how the competition will shape up,” he told Bloomberg Television. “If a new entrant outpaces Nvidia or a hyperscaler, we could see a rapid re‑allocation of capital.”

Interestingly, Chanos has reportedly taken a short position on Nvidia, citing concerns about over‑valuation and potential competition from other chipmakers like AMD and Google’s custom ASICs. The article indicates that Chanos’s short on Nvidia has been “increasing in size” as of the latest quarterly filing, a stark contrast to Burry’s long position in the same company.

4. What Could Go Wrong?

While the potential upside is clear, the article outlines several risks that could undermine Burry’s AI thesis:

Burry appears to have factored some of these risks into his portfolio by allocating a portion of his holdings to more diversified cloud providers and Oracle, which has a stable enterprise customer base.

5. Takeaway for Investors

Burry’s recent move into AI‑related stocks showcases how even seasoned contrarian investors are embracing the technology’s potential. For many retail traders, the article has prompted a re‑evaluation of AI’s long‑term value proposition and the possible pitfalls of chasing hype.

Key points to remember:

• Diversification within AI: Burry spreads his bets across hardware (Nvidia), platform (Meta), software (Oracle) and infrastructure (hyperscalers). This can reduce concentration risk.

• Cautionary voices matter: Jim Chanos’ short on Nvidia and broader caution on valuations underscore the need to be vigilant about market sentiment.

• Fundamental drivers: Nvidia’s GPU dominance, the data needs of enterprises, and the increasing adoption of AI across industries remain strong fundamentals, supporting Burry’s bullish stance.

• Potential upside vs. downside: While AI can drive substantial growth, the technology’s maturation may also bring volatility. A balanced view that weighs both sides is essential.

6. Where to Look Next

The article concluded with a look ahead, noting that Burry’s portfolio is still evolving. Upcoming earnings releases from Nvidia and Meta will provide a clearer picture of how the AI market is performing. Additionally, CNBC and Financial Times have tracked Chanos’s short positions, offering further insight into where the contrarian might be betting against the AI boom.

For investors interested in following Burry’s AI play, the next quarterly filing is scheduled for December 2025, which will reveal whether his positions have been scaled up or reduced.

In the ever‑evolving landscape of AI, Michael Burry’s foray into Nvidia, Meta, Oracle and the hyperscalers serves as a compelling case study of how fundamental analysis, risk management and a clear thesis can guide even the most aggressive market narratives. Whether Burry’s bets pay off or the AI bubble bursts, one thing is clear: the AI sector remains one of the most watched and contested arenas in modern finance.