Michael Burry's Scion Capital Bets on Chinese Tech Rebound, Doubles Down on Nvidia Puts

Michael Burry, the investor famed for predicting the 2008 housing crash, has executed a high-conviction, contrarian trade through his firm Scion Asset Management. His latest 13F filing reveals a significant pivot: establishing new long positions in Chinese tech giants JD.com and Alibaba while simultaneously increasing his bearish bet against AI chip leader Nvidia. This dual move signals a stark divergence from prevailing market sentiment, betting on a recovery in battered Chinese equities while positioning for a potential pullback in the year's hottest stock.

The filing shows Scion initiated positions of 75,000 shares in JD.com and 50,000 shares in Alibaba during the first quarter. Concurrently, Burry increased his firm's exposure to put options on Nvidia, a position first established in the previous quarter. This strategy places him directly against two dominant market narratives: the sustained dominance of U.S. AI infrastructure plays and the continued de-risking from Chinese equities. The move into JD and Alibaba represents a classic value play, targeting companies trading at multi-year lows amid regulatory and macroeconomic headwinds.

Burry's track record of identifying major market dislocations brings intense scrutiny to these positions. His bearish stance on Nvidia, now expanded, directly challenges the consensus view of unending AI-driven growth. Meanwhile, his capital allocation to China's e-commerce leaders is a high-stakes wager on a geopolitical and economic détente, or at least a valuation floor. For institutional and retail investors alike, Burry's quarterly disclosures serve as a pressure test for market theses, forcing a re-examination of risks in both the soaring U.S. tech sector and the out-of-favor Chinese market.