Michael Burry's AI Bubble Newsletter Launch: Impact on NVDA and Market Dynamics

Michael Burry’s launch of the $379/year Substack newsletter “Cassandra Unchained” on Nov 24, 2025, follows his hedge fund closure and SEC deregistration [1]. The newsletter focuses on AI bubble warnings, comparing Nvidia (NVDA) to Cisco in the dot-com era [1]. Engagement data shows rapid subscriber growth: 23k+ in 24 hours [2], rising to over 60k by Nov25 [3]. Platforms include Substack, X (Twitter), and Reddit [input context]. Public opinion is mixed: Reddit users accuse Burry of a cash grab to fund losing shorts (NVDA/Palantir) [input context], while some agree on bubble potential but question timing [input context]. NVDA responded via a private memo to analysts [4]. Market impact: NVDA’s stock dropped 10% month-to-date [5], with a 6% drop on Nov25 amid overlapping Google-Meta chip deal news [5].

1. Burry’s shift from hedge fund to paid newsletter frees him from SEC constraints, allowing unfiltered claims but raising credibility concerns [1].
2. The debate highlights tension between contrarian warnings and short-term market momentum (e.g., NVDA’s AI hardware dominance vs. bubble fears).
3. Subscriber growth indicates strong demand for Burry’s contrarian views despite criticism, suggesting a niche market for bearish AI analysis.

• Risks
  : Burry faces reputational risk from cash grab accusations; NVDA faces market risk from bubble narratives and competitive threats (Google-Meta chips) [5].
• Opportunities
  : Burry’s newsletter could monetize his 1.6M X followers [1]; investors may reevaluate AI sector exposure amid the debate.
• Note
  : Investors should be aware of volatility risks associated with AI stocks amid conflicting narratives [0].

Burry’s newsletter launch links contrarian analysis to market dynamics. Mixed sentiment reflects uncertainty about AI sector sustainability and Burry’s motives. NVDA remains a focal point of the AI bubble debate, with its stock performance sensitive to both fundamental news and narrative shifts.