Core Viewpoint - Nvidia and Palantir are experiencing scrutiny over their valuations, which some investors believe exceed their fundamental performance, leading to short positions taken by notable investor Michael Burry [1][2]. Company Analysis - Michael Burry's hedge fund, Scion Asset Management, has disclosed short positions against Nvidia and Palantir, indicating a belief that their stock prices are inflated [2]. - Both companies recently reported strong earnings, surpassing analyst expectations, yet there is skepticism about whether this will lead to positive market reactions [2]. - Palantir's CEO, Alex Karp, argues against Burry's short positions, emphasizing that both companies are financially successful and questioning the rationale behind betting against them [4]. Investment Strategies - Traders who align with Burry's perspective can utilize inverse ETFs such as Direxion Daily NVDA Bear 1X Shares (NVDD) and Daily Direxion PLTR Bear 1X Shares (PLTD) to short these stocks without margin accounts [3]. - Conversely, traders can also leverage their exposure to Nvidia and Palantir through bullish ETFs like Direxion Daily NVDA Bull 2X Shares (NVDU) and Direxion Daily PLTR Bull 2X Shares (PLTU) for potential profit regardless of market direction [5].