Michael Burry, the investor famously portrayed in The Big Short, has taken short positions against two high-profile tech stocks—Nvidia Corp. (NVDA) and Palantir Technologies Inc.—according to a regulatory filing released Monday.
Burry’s Scion Asset Management purchased put options, signaling a bet that shares of the artificial intelligence-focused companies will decline. The move comes at a time when AI-related stocks are trading at elevated valuations, drawing close market attention.
The timing of the disclosure is notable. Palantir just reported strong third-quarter results and raised its full-year revenue forecast to $4.4 billion, yet its shares fell as much as 7% in early trading Tuesday, reflecting investor skepticism over its valuation. Nvidia, set to report earnings on November 19, also saw its shares dip more than 2% Tuesday morning.
Adding to the pressure, President Donald Trump recently said in an interview that he would block Nvidia from selling advanced chips to China, citing national security concerns.
Known for his contrarian approach, Burry has repeatedly warned of market excesses. In an October 2023 social media post, he hinted at speculative bubbles, sharing a still from The Big Short with the caption: “Sometimes, the only winner is the one who doesn’t play.” His username, “Princess Cassandra,” references the Greek myth of a prophet whose accurate warnings went unheeded.
Still, Burry’s bearish bets have not always paid off immediately. His short position on Tesla in 2021 backfired when the stock doubled over the following six months, though it later corrected sharply in 2022. More recently, his bullish stake in Estée Lauder has surged over 40% since May.
Burry’s latest move aligns with cautionary comments from several Wall Street leaders. Executives from Goldman Sachs and Morgan Stanley have recently warned investors to brace for potential valuation pullbacks in the coming months.
Scion Asset Management currently manages approximately $155 million. As one of the few who foresaw the 2008 financial crisis, Burry’s latest wager against two AI giants will be closely watched as a barometer of market froth.
