‘Big Short’ investor Burry bets against Nvidia and Palantir

Group 1: Investment Moves - Michael Burry's hedge fund, Scion Asset Management, has purchased put options on Nvidia and Palantir Technologies, indicating a bet against these companies as their share prices are expected to fall [1][2] - Scion's filings reveal a bet of approximately $187 million against Nvidia and about $912 million against Palantir, with these positions added in the third quarter [2][4] Group 2: Market Context - The debate over whether the AI sector has entered a bubble has intensified, with both the S&P 500 and Nasdaq 100 reaching record highs, while some investors caution that valuations are excessively high [2][3] - Nvidia became the world's first $5 trillion company earlier this year, and Palantir's stock has surged 174% in 2025, driven by heightened demand for AI and defense technology [3] Group 3: Company Performance - Palantir raised its annual revenue outlook, but its shares fell by as much as 8% in premarket trading due to concerns over high valuation, while Nvidia shares also decreased by up to 2.6% [4] - Scion Asset Management has previously warned of overheated markets and has liquidated most of its portfolio earlier this year, shifting focus to put options on several U.S.-listed Chinese tech firms [4][5] Group 4: Other Positions - Scion also holds call options on Halliburton and Pfizer, which are bets that profit if share prices rise [5] - The fund's total positions decreased from 15 at the end of June to 8 at the end of September, valued at approximately $1.38 billion [5]