Yahoo Finance·2025-11-05 15:17Core Insights - Michael Burry, known for predicting the 2008 housing crash, has recently taken a bearish stance on the AI sector by acquiring substantial put options on Palantir Technologies and Nvidia, indicating skepticism towards the ongoing AI hype [1][2] Investment Strategy - Scion Asset Management allocated approximately 80% of its $1.1 billion notional portfolio value to put options on Palantir and Nvidia, with Palantir being the largest position at around $912 million and Nvidia at approximately $186 million [5][7] - The put options allow Scion to profit if the stock prices of these companies decline, reflecting Burry's doubts about their valuations amidst the AI boom [2][6] Historical Context - Burry gained fame for his successful shorting of mortgage-backed securities before the 2008 financial crisis, showcasing a history of bold investment calls [3] - His track record has been mixed since then, with some successful predictions and others that did not materialize, such as warnings about overvalued tech stocks during bullish market phases [4] Market Sentiment - Burry's recent actions and social media posts suggest a contrarian view on the AI market, echoing his previous critiques of market exuberance and inflated valuations in tech stocks [4][6]