LONDON (IT BOLTWISE) – Well-known investor Michael Burry, known from the film ‘The Big Short’, has once again placed a bold bet. This time he is betting on an impending crash in the field of artificial intelligence. With large put options against Palantir and NVIDIA, he shows his skepticism about the current AI euphoria.
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Michael Burry, who gained fame by predicting the 2008 financial crisis, has once again placed a bet that is sending the financial world into turmoil. This time his attention is focused on the area of artificial intelligence, where he expects an imminent crash. Burry’s investment firm Scion Asset Management acquired large put options on Palantir Technologies and NVIDIA in the third quarter of 2025. These two companies are at the center of the current AI boom, but Burry sees this as overvalued.
Palantir Technologies, known for its big data analysis software, and NVIDIA, the leading provider of AI chips, are currently benefiting greatly from the AI euphoria. But Burry sees the high valuations of these companies as a bubble that could soon burst. At the end of the third quarter, Scion Asset Management’s portfolio consisted of 66.04% put options on Palantir and 13.51% on NVIDIA. The total value of these positions was reported to be around $912 million for Palantir and $186 million for NVIDIA.
The decision to bet against these tech giants is based on Burry’s assessment that current valuations are not justified by actual growth potential. He sees parallels to the real estate bubble of 2008, which he successfully predicted. In a recent post on Platform But his investments show that he is actively betting on falling prices.
Aside from bets against Palantir and NVIDIA, Scion Asset Management has also purchased call options on healthcare group Pfizer and oil company Halliburton. Burry also has small amounts in shares of Molina HealthCare, Lululemon, SLM Corp. and preferred shares from Bruker. This diversification shows that Burry continues to focus on different industries despite his skepticism about the AI euphoria.
As a value investor, it’s not surprising that Burry is critical of Palantir and NVIDIA’s high price-to-earnings ratios. While Palantir has a P/E ratio of almost 290, NVIDIA’s is at 46. These valuations could be justified by the high growth potential, as economist Mohamed El-Erian sees it. Nevertheless, Burry’s bet remains a strong signal to the market that he expects the AI euphoria to end soon.
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