Michael Burry Makes Surprising Call on Nvidia Stock

Detailed summary

"I am not tempted as a long-term hold from here, but I imagine the whole market is going to think this is a heck of a trade fairly soon," Burry said. His concern centers on whethe…

Michael Burry (Trades, Portfolio), the investor famous for predicting the 2008 financial crisis, sees a potential trading opportunity emerging in Nvidia (NASDAQ:NVDA) following its recent selloff, even as he questions the chipmaker's long-term competitive advantage. However, his biggest disclosed investments tell a different story, with the investor favoring Latin American e-commerce giant MercadoLibre (NASDAQ:MELI) over the artificial intelligence boom.

MercadoLibre operates one of Latin America's largest e-commerce and financial technology platforms. It generates revenue through online shopping, digital payments, advertising, lending and logistics services.

In a November 10 Substack post, Burry acknowledged Nvidia's short-term recovery potential while expressing doubts about its longer-term investment appeal.

"I am not tempted as a long-term hold from here, but I imagine the whole market is going to think this is a heck of a trade fairly soon," Burry said.

His concern centers on whether Nvidia can maintain its technological dominance over the next five years as competition intensifies.

Meanwhile, Burry identified MercadoLibre and Australian online furniture retailer Temple & Webster as his two largest positions, each representing more than 10% of his portfolio.

He disclosed purchasing additional MercadoLibre shares twice below $1,500 and indicated he would consider buying more following another 20% decline.

The conviction comes despite MercadoLibre's recent earnings disappointment.

Third-quarter revenue and financial income surged 45% to $10.75 billion, while gross merchandise volume increased 38% to approximately $23 billion.

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