"The poster child of AI-sector expansion is, of course, the almighty NVIDIA ( NASDAQ:NVDA). A designer of graphics processing units (GPUs) that are sufficiently power to handle AI applications, NVIDIA is a darling of the financial markets in the 2020s. It's amazing to discover that NVDA stock traded at $13 five years ago. Fast-forward to November 2025, and NVIDIA shares are up by more than 1,300% and trade near $200."
"Then there's Palantir Technologies ( NASDAQ:PLTR), the cybersecurity software firm that successfully integrated AI tech. Short-term traders didn't react positively to Palantir's just-released quarterly results, but the long-term trend is still to the upside. Palantir stock's 1,700% ascent over the past five years has been breathtaking. Along the way, every price dip got bought up and, without a doubt, many short sellers lost their shirts betting that PLTR stock would collapse."
Michael Burry appears to be using options to take a short position against widely touted large-cap AI stocks. Burry gained notoriety by wagering against the U.S. housing market in 2008. Social media attention has focused on his short-AI bet amid rising fears of an AI bubble and potential market correction. Investors are urged to exercise caution before shorting two popular AI names. NVIDIA and Palantir exemplify the powerful long-AI trade, with NVDA up over 1,300% and PLTR up about 1,700% over five years, inflicting heavy losses on many short sellers.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]