Michael Burry Bets Against Nvidia and Palantir. But It's Not What You Think.

Core Viewpoint - Michael Burry, known for his shorting strategy during the 2008 mortgage crisis, has taken a significant position against Nvidia and Palantir Technologies, purchasing $1.1 billion in put options, which may have influenced the recent decline in these stocks [2][9]. Group 1: Burry's Investment Strategy - Burry's fund, Scion Asset Management, manages nearly $1.4 billion in assets and is required to report holdings quarterly, providing a snapshot of a potentially dynamic portfolio [4][6]. - The nature of hedge funds allows for rapid changes in positions, and Burry's current holdings include put options in Nvidia and Palantir, alongside call options in Pfizer and Halliburton [7][9]. - Burry's strategy may not indicate a long-term bearish outlook on Nvidia and Palantir, but rather a tactical move to capitalize on perceived overvaluation or short-term price declines [10][13]. Group 2: Market Context and Stock Performance - Nvidia's current market capitalization stands at $4621 billion, with a recent price change of +1.68%, while Palantir's market cap is $415 billion, with a +1.00% change [8][12]. - Both stocks have experienced price declines recently, which may align with Burry's expectations of market pressure on these high-value stocks [9][13]. - The retail investor's perspective differs from institutional investors like Burry, who operate with distinct goals and strategies [12][14].