Michael Burry made $100M from the 2008 financial crash — and now he’s betting on the AI bubble bursting. What you can do

Group 1: Market Sentiment and Speculation - Concerns about speculation in the AI sector are rising, with Goldman Sachs CEO David Solomon warning that much of the capital invested in AI may not yield returns [1][6] - Hedge fund manager Michael Burry has taken bearish positions against Nvidia and Palantir, two leading companies in the AI market, indicating a belief that these stocks may be overvalued [3][5] Group 2: Company Performance - Palantir's shares have increased by 260% over the past year, despite a recent pullback following earnings [2] - Nvidia has seen its stock price surge by 41% year-to-date and an impressive 1,240% over the past five years, briefly achieving a $5 trillion valuation [2] Group 3: Investment Strategies - A put option allows investors to sell a stock at a predetermined price, typically used when expecting a decline in stock price; Scion Asset Management disclosed put options on 1 million shares of Nvidia and 5 million shares of Palantir [3] - The notional value of the put positions held by Scion is nearly $1.1 billion, reflecting significant bearish sentiment towards these stocks [1][3]