Burry’s latest 13F filing reveals bearish bets on Nvidia and Palantir, shaking AI-heavy tech stocks and reigniting fears of another market bubble.
Michael Burry, the contrarian investor who famously bet against the US housing market before the 2008 crash, has found a new bubble to short, the artificial intelligence frenzy.
His fund, Scion Asset Management, has disclosed bearish positions on Nvidia Corp. and Palantir Technologies, two of the most prominent names in the AI rally that has pushed US equities to record highs.
According to his latest 13F filing with the US Securities and Exchange Commission (SEC), Burry purchased put options on 5 million Palantir shares and 1 million Nvidia shares, with a combined notional value of about $1.1 billion. Put options typically gain when stock prices fall.
AI’s biggest bulls become Burry’s new targets
The disclosure rattled markets on Tuesday (US time), sending Nvidia shares down nearly 4 percent and Palantir tumbling over 8 percent, even though Palantir had just raised its full-year earnings guidance and reported better-than-expected quarterly results, according to Investopedia.
Nvidia, which recently crossed a $5 trillion market capitalisation, has been the face of the global AI rally. Palantir, up 175 percent in 2025, trades at over 80 times forward price-to-sales, making it the most expensive stock on the S&P 500.
Burry’s timing, shorting at the top of an AI boom, mirrors his earlier plays ahead of the 2008 subprime crisis, a story immortalised in The Big Short.
‘Sometimes, we see bubbles’
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Burry appeared to hint at his scepticism last week on X (formerly Twitter), posting an image of Christian Bale portraying him in The Big Short with the caption: ‘Sometimes, we see bubbles.’
He followed up with another post showing charts of slowing cloud growth at Amazon, Alphabet, and Microsoft, suggesting AI-driven spending may be unsustainable, echoing the dot-com-era excesses.
The investor also quipped, after his 13F disclosure made headlines: “Fake news! I am not 5’6” and not that there’s anything wrong with that.”
He then took aim at ‘journalists reporting on 13Fs,’ hinting that filings don’t always reflect his full trading strategy.
Palantir CEO hits back
Palantir’s outspoken CEO Alex Karp fired back during a CNBC interview, calling the idea of shorting Palantir and Nvidia “bats— crazy.”
“We are two of the only companies making all the money in AI,” Karp said, adding that some short sellers were engaging in “market manipulation.”
Despite his pushback, Palantir shares have shed about $51 billion in market value since Burry’s short became public, according to Michael Burry Stock Tracker.
Global ripple: tech selloff hits Asia and crypto
According to Investopedia, the AI selloff spilt over to global markets.
- Japan’s Nikkei 225 dropped 2.5 percent,
- South Korea’s KOSPI fell 2.85 percent, and
- Europe’s STOXX 600 slid 0.46 percent before recovering.
- Bitcoin briefly dipped below $100,000 before rebounding to $101,000.
Not Burry’s first AI short
This isn’t Burry’s first bet against Nvidia. Earlier this year, Scion had liquidated most of its equity portfolio while buying puts on Nvidia and Chinese tech stocks, a move that paid off temporarily when Nvidia fell 20 percent in the first quarter before rebounding sharply.
In that filing, Scion had clarified the puts could “serve to hedge long positions,” a statement missing from this latest disclosure, adding to the mystery around whether this is a pure short or a hedge.