Michael Burry Makes Surprising Call on Nvidia Stock Moz Farooque ACCA Wed, November 11, 2026 at 11:06 AM EST 2 min read NVDA +3.98% MELI +0.65% ADBE +0.56% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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.
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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.
However, operating margins narrowed to 6.3% as logistics and marketing investments pressured profitability.
Burry also added to Adobe (NASDAQ:ADBE), JD.com (NASDAQ:JD) and long-dated Sprouts Farmers Market (NASDAQ:SFM) call options.
Nvidia's November 17 earnings report represents an immediate test of Burry's cautious outlook.
Investors should monitor AI accelerator demand, gross margins and competition from custom chips developed by major cloud providers.
For MercadoLibre, the critical question is whether strong e-commerce and payments growth can translate into improving profitability.
Investors should track operating margins, logistics expenses and Mercado Pago credit performance.
Burry's positioning suggests a preference for established businesses trading at more attractive valuations rather than relying exclusively on AI enthusiasm.
However, his disclosed purchases are not guarantees of future returns, and further margin compression could weaken MercadoLibre's investment case.
