Big Short Investor Michael Burry Bets $1.1BN on Fighting AI Stocks Nvidia and Palantir
Michael Burry, the investor who pushed to predict the price of assets under 2007 and promoted the short, put $ 1.1 billion against shares of intelligence around the world – technology nvidia and palantir.
The regulatory filing shows that the Burry’s Hedge fund, bought options – What is the profit when nvidia’s prices are worth about $ 912 million worth on September 30.
Walking in Surrey’s latest Trapreriarian Standar marks against one of the hyped styles with the road to the wall. Writing in X (previously previously) in his first post, he warned supporters of the emerging ai bubble, saying: “Sometimes, we see something to do with it. Sometimes, the only win should not be played.”
His revelations coincided with a broader market pullback, as fears of undervaluation in the AI sector sent indices lower on Tuesday. The VIX Volatility Index, called Wall Street’s so-called “Fear Wave,” rose to a two-week high.
NVIDIA, which recently became the first company to reach a market valuation of $5 trillion, fell 4 percent to $198.69 in New York trading. Palantir, whose stock has gained more than 360 percent over the past year, slid 8 percent to $190.70.
Despite reporting record earnings on Monday, Palantir traded nearly 250 times its trailing 12-month earnings — much higher than 33 and Microsoft’s 29.9.
Alex Karp, Palantir’s CEO, dismissed Burry Carish’s position in an interview with CNBC: “The two companies he wants are all the money, the idea that Chips and Otology are what you want in AI.”
Meanwhile, Wall Street Heaverweights Ted Pick, CEO of Morgan Stanley, and David Solomon, head of Goldman Sachs, warned that a 10-15 AI market correction could be sent after this year’s meeting driven by AI.
Select told an investment conference of financial leaders in Hong Kong: “We must accept the possibility of a drawdown that will not be driven by the effects of macro culif.”
Solomon added: “When you have these cycles, things can run for a while. But there are always mood swings – and none of us are smart enough to see them until they happen.”
The surge in enthusiasm for AI has drawn comparisons to the dot-com bubble of the late 1990s, when speculative investments in Internet companies drove prices to unsustainable levels.
However, some analysts say this cycle is different. The companies leading today’s AI revolution – such as Nvidia, Microsoft, and Alphabet – are able to pay for their revenue and unlike their dollar-draining infrastructure, unlike the DOT-COM ERA.
Whether Burry’s latest short bet will pan out remains to be seen — but history suggests that when a big short investor sees a bubble, the markets tend to listen.
