Michael Burry’s Scion Asset Management has taken bearish positions in AI darlings Nvidia (NVDA) and Palantir (PLTR), a regulatory filing showed, as the famed investor hinted caution toward the artificial intelligence trade that has boosted a lot of this year’s market rally.
According to Scion’s latest 13F filing, the firm disclosed put options on 1M shares of Nvidia (NVDA) and 5M shares of Palantir (PLTR).
Nvidia (NVDA) has jumped 54% since the start of the year, while Palantir (PLTR) has surged over 173% year-to-date.
At the time of writing, Nvidia (NVDA) was down 1.9% premarket, and PLTR had fallen 6.8% even after posting strong Q3 results and raising full-year guidance.
Burry, who is best known for his prescient bet against the U.S. housing market ahead of the 2008 financial crisis, also shared some charts highlighting why investors should exercise more caution towards AI-linked stocks.
In a recent post on X, Burry shared a chart showing a sharp slowdown in the cloud growth segment at Amazon (AMZN), Alphabet (GOOGL)(GOOG) and Microsoft (MSFT) — all major players in the AI boom.
Another chart showed that the rise in U.S. tech capex growth is now matching the levels that were seen during the dot-com bubble in 1999-2000.
Along with the chart, Burry channeled Obi-Wan Kenobi, writing: “These aren’t the charts you are looking for. You can go about your business.”
Burry also changed his profile name on X to Cassandra Unchained. Cassandra was a Trojan princess whose accurate predictions were doomed to be disbelieved.
Earlier, he also shared a photo of actor Christian Bale as Burry in a from a scene from the movie “The Big Short” and wrote, “Sometimes we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
Last week, Nvidia (NVDA) made history as it became the first company in the world to crack $5T in market capitalization. The stock has rallied 55% year-to-date, adding more than $1.6T in market value. That follows a 170% surge in 2024 and a 240% gain in 2023, cementing Nvidia’s status as the dominant force in the AI hardware market.
Palantir (PLTR) has also seen great success, helped by AI-driven government and enterprise contracts.
Here are some tech-related ETFs: (NYSEARCA:VGT), (NYSEARCA:IYW), (NYSEARCA:FTEC), (NYSEARCA:IXN), and (NYSEARCA:RSPT).
Artificial Intelligence/Robotics ETFs: (NASDAQ:AIQ), (NASDAQ:BOTZ), (NYSEARCA:DTEC), (NYSEARCA:GINN), (NASDAQ:ROBT), (NYSEARCA:TECB), (NASDAQ:XT), (NYSEARCA:THNQ), and (NYSEARCA:CHAT).