Nvidia (NVDA) stock dropped 4% on Tuesday as investor Michael Burry placed $187 million in put options against the AI giant. Despite the dip, Nvidia is up over 130% in 2025, remaining a top performer.

Loop Capital predicts Nvidia’s valuation could skyrocket to $8.5 trillion due to AI growth, potentially doubling unit shipments. Analyst Ananda Baruah sets a $350 price target, citing strong demand at the forefront of AI adoption.

Palantir CEO Alex Karp criticizes Burry for shorting NVDA, calling it “bats— crazy.” Burry also has $912 million in put options against PLTR. Microsoft’s approval to ship chips to the UAE and Nvidia’s historical 8.27% November return make it a compelling buy.

Wall Street analysts disagree with Burry’s short position on NVDA, maintaining a “Strong Buy” rating with a $230 target, suggesting a 15% upside potential.

Read more at Yahoo Finance: Michael Burry Is Betting Against Nvidia Stock. Should You?