Nvidia Shares Face Market Crosscurrents Amid Billion-Dollar Deal and Bearish Bet

Nvidia finds itself at the center of conflicting market forces. While the chipmaker’s CEO Jensen Huang announced a major new partnership with Deutsche Telekom in Berlin and analysts tout record future orders, prominent investor Michael Burry has unsettled markets with a substantial bearish position against the AI sector. The contrasting developments sent shares downward despite strong underlying business metrics, raising questions about potential overvaluation in the artificial intelligence space.

Significant European Expansion Through Telekom Partnership

In a strategic move for European AI infrastructure, Nvidia and Deutsche Telekom will jointly establish a state-of-the-art computing facility in Munich. The project, valued at one billion euros, represents a significant commitment to sovereign AI capabilities within Europe. Scheduled to commence operations in the first quarter of 2026, this “AI Factory” will host thousands of Nvidia’s most advanced processors.

Jensen Huang personally presented the initiative in Berlin, emphasizing that “Germany’s legendary engineering is now being elevated to a new level by artificial intelligence.” The agreement extends beyond symbolic importance, providing European corporations with access to domestic AI infrastructure amid ongoing geopolitical tensions. In a separate development, the U.S. government authorized Microsoft to export more than 60,000 Nvidia chips to the United Arab Emirates, including cutting-edge GB300 Grace Blackwell models.

Analyst Confidence Backed by Substantial Order Projections

Financial analysts remain bullish on Nvidia’s prospects. Jefferies Financial Group raised their price target for the company on Tuesday, citing visibility into approximately $500 billion worth of orders for 2025 and 2026. Their assessment indicates that Nvidia’s Blackwell and Rubin product families are sold out for years to come. This optimistic outlook was reinforced by Loop Capital Markets, which maintained its clear “Buy” recommendation the previous day.

The fundamental picture appears robust, with Nvidia strengthening its dominance in AI infrastructure amid massive demand and a fully stocked order pipeline.

Should investors sell immediately? Or is it worth buying Nvidia?

Market Jitters Following Burry’s Bearish Position

The positive narrative faced a counterpoint when Michael Burry, the investor who famously predicted the housing bubble and profited substantially from its collapse, established a significant short position against Nvidia. Through his Scion Asset Management firm, Burry acquired substantial put options—financial instruments that gain value when share prices decline.

This disclosure alone triggered a market reaction, driving Nvidia shares down more than two percent on Tuesday. Given Burry’s reputation for prescient market analysis, his bearish stance commands attention from investors worldwide. His position sends a clear warning that the artificial intelligence boom could potentially mirror previous market bubbles, such as the dot-com era or housing crisis, causing apprehension among investors who have heavily favored technology stocks.

November Earnings Report Looms Large

Nvidia shares now navigate turbulent waters between operational excellence and valuation concerns. The company continues to deliver impressive business developments: billion-dollar projects, international expansion, and overflowing order books. Yet questions persist about whether current share prices reflect fundamental value or market euphoria.

The upcoming quarterly earnings report, scheduled for release on or around November 19, may provide crucial clarity. Until then, the stock remains suspended between two narratives: that of an innovative market leader and that of a potentially overvalued hype-driven investment.