Yet Michael Burry had shorted it even before the earnings came out?
Burry earned legendary status in 2008 by spotting the mortgage collapse before anyone else. That kind of independent conviction is rare, but his position here runs directly against real operational data.
In it’s latest quarterly financial report, Nebius reported reported 454% year-over-year revenue growth with earnings hitting $236 million, up from a $21 million loss last year. Operating cash flow swung to $2.25 billion.
The balance sheet holds $8 billion in cash. Contracted capacity expanded from 4 gigawatts to 5 gigawatts.
Management shared a detail on the call that defines current demand. They could sell out their entire 2027 capacity right now. They chose not to do that so they can keep compute open for immediate customer needs at better pricing.
Shorting a business that turns away customers is a dangerous setup.
The wider shareholder base tells a similar story. Nvidia owns 9.3%, Goldman Sachs holds 10.5% of the company. Contracts from Microsoft, Meta, and Reflection top $46 billion, while customer prepayments are tracking above $9 billion this year.
Burry saw this data and doubled down on his short.
This is no longer a trade on a rich valuation multiple. It seems Burry is just a perma-bear, who has been calling for a market “crash” years.
Being early and being wrong look the same until the trade plays out. Right now, every fundamental metric points the other way.
After a 50% run-up in a single week, I’ll admit we took profits and trimmed our position as part of our disciplined risk management process. Trimming, however, is not betting against the the company.
Smart investors rely on data, not fear or greed to make their investment decisions.
While market corrections happen and the AI infrastructure buildout may eventually overshoot, structural overcapacity is still years away.
Until then, investors face a clear choice: participate in the defining technological revolution of our lifetime, or sit on the sidelines and argue.
The choice is ours.
Follow our company page AIX Capital Group for regular insights and research on AI, robotics, and emerging technology.
This article is for informational purposes only and should not be considered financial or investment advice. Investing involves risk.