Michael Burry Bet Against Nvidia and Palantir—Is it Time to Get Out?

Core Viewpoint - Dr. Michael Burry has made significant bearish bets against Nvidia and Palantir, amounting to over $1 billion, raising concerns about a potential AI bubble in the market [3][4][5]. Company Analysis - Burry's positions include $187 million in put options on Nvidia and $912 million on Palantir, indicating a strong belief that these stocks are overvalued [8]. - Nvidia and Palantir have been major beneficiaries of the AI revolution, but their current valuations are considered expensive, prompting Burry's bearish stance [8][12]. - Despite the high valuations, both companies have shown substantial growth in the past, complicating the assessment of their current worth [12]. Industry Context - The discussion around an AI bubble has gained traction, with comparisons to the dot-com era, suggesting that not all AI-related companies will experience the same downturn if a correction occurs [9][10]. - The broader market, particularly tech-heavy indices like the Nasdaq 100, may not be as vulnerable as individual high-flying AI stocks, indicating a nuanced view of the market's health [9]. - Companies like Apple and Alphabet are viewed as more secure investments in the face of potential AI-related sell-offs, given their established profitability and lower valuations compared to AI startups [10][11].