Michael Burry Takes Bearish Positions Against AI Leaders Nvidia and Palantir

Michael Burry, renowned for predicting the 2008 housing market collapse, has positioned his firm, Scion Asset Management, against leading artificial intelligence companies Nvidia and Palantir. Recent regulatory filings reveal that Scion has acquired put options tied to approximately 1 million shares of Nvidia and 5 million shares of Palantir, indicating expectations of a decline in their stock prices.

This move comes amid a surge in AI-related stocks, with Nvidia's shares climbing about 54% and Palantir's soaring over 170% year-to-date. Burry's actions suggest concerns that these valuations may be unsustainable.

Prior to these disclosures, Burry posted on social media, stating, "Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play."

In response, Palantir CEO Alex Karp criticized the bearish stance, calling it "crazy" to bet against companies like Palantir and Nvidia.

Burry's bearish positions have contributed to a broader market pullback, with the tech-heavy Nasdaq Composite falling 2.04% and the S&P 500 declining 1.17% on Tuesday.