"The Big Short's" Burry obliquely warns: Sometimes we see a bubble, and the only winning move is not to play.

As market doubts over the AI boom continue to grow, "Big Short" Michael Burry recently warned retail investors that “sometimes we see bubbles.”

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

Previous position filings showed that his Scion Asset Management liquidated almost all its publicly held stocks in the first quarter of this year and simultaneously took bearish positions against Nvidia.

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

Burry's warning comes at a time when a handful of tech firms like Nvidia are drawing attention with surging stock prices. Nvidia became the first company to surpass a $5 trillion market cap this week, accounting for nearly a tenth of the S&P 500 index, which exceeds the GDP of India, Japan, and Germany.

According to the 13F filing released on May 16, Burry’s Scion Asset Management liquidated almost all its stocks in the first quarter of 2025, retaining only its position in Estée Lauder. At the same time, the fund bought put options against Nvidia.

The regulatory filing specifically noted that these puts against Nvidia and other firms “may be used to hedge long positions not reportable on the 13F.” This disclosure leaves room for interpretation about Burry’s bearish stance.

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