Michael Burry Sees A ‘Mechanical Bid’ Under NVDA Stock – Even As He Questions Nvidia’s Succession Plan And Asia Sales

Burry said a “mechanical bid” driven by fund flows and preset investment rules overwhelmed sellers at Thursday’s open.

• Retail investors bought about $111 million of Nvidia shares in the first 30 minutes, a record opening inflow.
• Burry backed interim CEO Colette Kress’s integrity, but questioned Nvidia’s ability to promote an experienced operating leader.
• He questioned Nvidia’s Asia disclosures after research linked six Chinese AI models to Blackwell hardware fingerprints.

Shares of Nvidia Corp. (NVDA) are outperforming only Tesla among the Magnificent Seven so far this year after Jensen Huang’s departure as CEO, even as “The Big Short’ investor Michael Burry said that automatic buying overwhelmed sellers at Thursday’s market open.

NVDA stock clawed back from Thursday’s early lows but still fell 4%, making it the Magnificent Seven’s biggest loser for the session. Meta slipped 1% and Apple edged down 0.2%. Alphabet and Tesla gained about 2% each, while Amazon rose 0.5% and Microsoft added 0.4%.

However, the rebound offered little relief in the yearly rankings. Nvidia was down about 11%, ahead of only Tesla’s 12% decline. Apple led with a 31% gain, followed by Amazon at 16% and Microsoft at 9%. Alphabet and Meta were down 4% and 5%, respectively.

The ‘Mechanical Bid’ Beneath NVDA Rebound

“The mechanical bid has stepped in under NVDA shares, and the market, at the open,” Burry said in his Substack chat. “There are just not enough sellers, once the market opens, to offset the buying power of that mechanical bid. We will see how it develops through the day.”

The “mechanical bid” means buying driven by incoming money and preset rules. In an August post, Burry pointed to retirement contributions, index-fund inflows, company buybacks and strategies that buy more when markets become calmer. He said that these purchases can support stocks through bad news because the money keeps flowing according to schedules and investment rules.

Retail investors apparently bought about $111 million of Nvidia shares in the first 30 minutes of trading on Thursday, a record opening inflow. 

Burry Backs Kress, Questions NVDA Succession Plan

Meanwhile, Burry welcomed Colette Kress’s appointment as Nvidia’s interim CEO even as he questioned the company’s succession planning. “I know Colette as a friendly acquaintance, and I am happy for her that she was chosen, despite the circumstances. She is an amazing woman, and I wish her well in this role,” he said in his Substack chat.

“That the Board in this position chose her suggests the Board believes she is free of any possible scandal. Which I think most that know her would assume to be true.”

Nvidia named Kress interim CEO on Thursday following Huang’s resignation as president, CEO and a director. Its CFO since 2013, she will keep that role while the board searches for a permanent successor.

Burry again expressed confidence in Kress’s integrity on X, then questioned why Nvidia had not promoted someone with broader experience running the business. “The $NVDA Board would not have chosen Colette Kress during this crisis if it believed she were complicit. I imagine those that work with her know her to be beyond reproach,” he said. “At the same time, the Board’s inability to elevate, from inside, someone with sufficient operating experience is in itself concerning.”

However, Nvidia’s board has backed Kress and the leadership team, saying it expects business operations, customer commitments and product plans to continue without interruption.

Blackwell Findings Put Asia Sales In Focus

Burry also questioned Nvidia’s Asia disclosures after a new analysis linked Chinese AI models to its advanced Blackwell chips. “This is no surprise to analysts who years ago questioned SE Asia/Singapore’s need for so many advanced $NVDA chips,” he said on X. “The real reveal would be evidence that NVDA booked more revenue and profit from Asia than it had let on.”

His response came after a report by former OpenAI researcher Will DePue, who said six models from DeepSeek, Moonshot AI, MiniMax and Ant Group carried numerical “fingerprints” matching Blackwell hardware. “It’s based on a forensic analysis of the model weights released by the companies themselves,” DePue said. He added that tests on physical Blackwell chips reproduced starting values found in DeepSeek-V4-Flash and Kimi K3.

Earlier, when a Substack reader questioned whether Nvidia should withdraw guidance over uncertainty about Southeast Asian sales reaching China, Burry replied: “I think Colette already knows.”

Burry Would Keep Cash Ready For Better Value

When asked how much cash an investor might hold without betting against stocks, Burry said he would keep 30%040% in cash equivalents, while waiting for better value.

“I cannot recommend, but I would be 30-40% ; if one considers that cash today is a bond equivalent, this becomes a fairly basic asset allocation 60% stocks/40% bonds until there is more widespread value in the market,” he said. He compared the approach with a traditional stock-and-bond portfolio, using cash equivalents as a defensive holding until more stocks offer attractive prices.

Burry Still Sees Chance For NVDA Bulls To ‘Get Out

In his earlier post titled, “The Don Goes Down: What Jensen’s Fall Means,” Burry warned that Huang’s exit could disrupt customer financing and weaken Nvidia’s bargaining power. He also alleged that customers had been pressured to buy chips before their data centers were ready.

Nvidia disclosed $42.4 billion in purchases of stakes in other companies during the six months ended July 26. It says these investments support growth and strengthen its competitive position.

However, Burry expects strong results next week, but believes the fallout from Huang’s departure will take longer to surface. “NVIDIA bulls will have another fluffy big chance to get out. Get out,” he said.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<