The Motley Foolยท2025-11-06 08:15Group 1: Michael Burry's Investment Strategy - Hedge fund billionaire Michael Burry has made significant short bets against popular AI stocks Palantir and Nvidia, indicating a bearish outlook on these companies [1][2][3] - Burry's portfolio at Scion Asset Management has outperformed the S&P 500 by 20 percentage points over the last three years, showcasing his investment acumen [2] Group 2: Palantir Technologies - Palantir develops AI and data analytics platforms, recognized for its ontology-based software that enhances decision-making through machine learning [4] - The company was acknowledged as a leader in AI/ML platforms by Forrester Research, outperforming competitors like Google, AWS, and Microsoft Azure [5] - In Q3, Palantir's revenue surged 63% to $1.1 billion, marking the ninth consecutive quarter of revenue acceleration, with non-GAAP earnings more than doubling to $0.21 per diluted share [6] - Burry has allocated 66% of his portfolio to put options in Palantir, reflecting his belief that the stock is overvalued at 143 times sales, the highest in the S&P 500 [7][8] Group 3: Nvidia - Nvidia is a leader in AI infrastructure, particularly known for its GPUs, which dominate the data center market with over 90% market share [9][10] - The company is expected to maintain its market position due to its superior software development platform and integrated hardware solutions [10] - Nvidia trades at a more reasonable valuation of 30 times sales and a price-to-earnings multiple of 57, with earnings projected to grow at 36% annually over the next three years [11] - Burry has taken a smaller short position in Nvidia, indicating concerns about competition from custom AI accelerators and export restrictions affecting its business in China [12][11]