The “Big Short” Investor Makes Another Bold Move
Famed investor Michael Burry, best known for predicting the 2008 housing market crash, has once again made headlines. According to new filings reviewed by Quiver Quantitative, his firm Scion Asset Management has taken short positions against major AI stocks Nvidia and Palantir. This move has reignited interest across Wall Street, as traders and analysts debate whether Burry is once again signaling a potential correction in the tech sector.
Both Nvidia and Palantir have seen tremendous growth throughout 2025, fueled by the AI boom and investor enthusiasm over generative and defense-related artificial intelligence applications. However, Burry’s latest bet suggests he believes the current valuations may have become overheated.
Burry’s History of Contrarian Bets
Michael Burry rose to fame after successfully predicting the collapse of the U.S. housing bubble — a story immortalized in the film The Big Short. Since then, his contrarian investing style has become legendary. He is known for taking large positions against prevailing market trends, often months or even years before those trends reverse.
In recent years, Burry has warned of speculative bubbles forming across several asset classes, including cryptocurrencies, meme stocks, and high-growth tech companies. His new short positions against Nvidia and Palantir align with his long-standing skepticism toward overvalued tech stocks during periods of market euphoria.
Why Target Nvidia and Palantir?
Both Nvidia and Palantir Technologies have become synonymous with the AI revolution. Nvidia dominates the semiconductor industry with its powerful GPUs, which are critical for AI training and data processing. Meanwhile, Palantir, a leader in AI-powered data analytics and government software, has seen its stock soar thanks to defense contracts and strong quarterly results.
However, Burry may believe that these companies’ share prices have outpaced their fundamental growth potential. Nvidia’s market capitalization recently neared $5 trillion, and Palantir’s valuation surged after being labeled an “AI winner” by major analysts.
According to the Quiver Quant report, Scion Asset Management has purchased a substantial amount of put options against both companies — financial instruments that increase in value when stock prices decline.
Market Reaction and Investor Sentiment
Following the news, investors began discussing whether Burry’s move could signal the beginning of a broader AI market correction. Some analysts agree that valuations for leading AI companies have reached historically high levels, drawing parallels to the dot-com bubble of the early 2000s.
Others argue that Nvidia and Palantir are fundamentally stronger than most speculative tech firms, citing their robust earnings, government contracts, and strategic AI partnerships. Despite these reassurances, Burry’s involvement tends to spark caution among retail and institutional investors alike.
Financial experts note that Burry’s trades often act as a sentiment check for the market, prompting deeper analysis of valuation risks in high-flying sectors.
What It Means for the AI Sector
If Burry’s prediction proves accurate, his positions could reflect a short-term correction in AI-related equities rather than a collapse. The broader AI market remains strong, with heavy investments continuing across industries from cloud computing to autonomous systems.
Still, Burry’s move could encourage other hedge funds to reassess their exposure to highly valued AI companies and diversify portfolios ahead of potential volatility.
For Nvidia and Palantir, the coming months will test whether their financial performance can justify their steep valuations. Investors will be closely watching upcoming earnings reports and AI infrastructure updates for signs of sustained growth or slowing momentum.
The “Big Short” Investor’s Influence
Michael Burry’s ability to move markets with a single filing remains unmatched. Every time he takes a position, it invites speculation, analysis, and debate. While some of his predictions have missed the mark, his macro-level warnings often highlight critical inflection points in financial markets.
Whether this new bet against Nvidia and Palantir proves prescient or premature, one thing is certain: Burry’s skepticism is once again challenging Wall Street’s AI optimism.
Conclusion
Michael Burry’s short positions on Nvidia and Palantir have reignited debate about the sustainability of the AI market’s rapid growth. As Scion Asset Management positions itself against two of the world’s most prominent AI players, investors must decide whether this is a cautionary signal — or just another contrarian move in Burry’s long history of bold bets.
The coming months will determine if his warnings ring true or if AI continues to defy gravity.
Stay ahead in finance and startup trends — visit StartupNews.fyi for the latest on market insights, AI developments, and business innovation.
