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Retail investors bought about $111 million of Nvidia shares in the first 30 minutes, a record opening inflow.
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Burry backed interim CEO Colette Kress’s integrity, but questioned Nvidia’s ability to promote an experienced operating leader.
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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.”
