"Technology stocks fell on Friday, amid fears of an AI bubble, a further drawn out federal government shutdown, and economic data that suggests consumer sentiment has fallen toward record-low levels. That's in addition to economic data that showed last month's layoffs hit their highest level for October-in 20 years. That report, from global outplacement firm Challenger, Gray & Christmas, also also said hiring slowed to lowest point in 14 years."
"Chip stock Arm Holdings plc ( ARM) was down 4%, while Advanced Micro Devices, Inc. ( AMD) fell 3%, and Al chip designer Nvidia ( NVDA) was down 1%, at the time of this writing in afternoon trading, as investors worry about high valuations, and mass layoffs in the name of artificial intelligence (AI). Tesla ( TSLA) was also down some 3%."
"According to his Securities and Exchange Commission filings, Scion bought an estimated $187.6 million in puts on Nvidia, and another $912 million on Palantir, as CNN reported. Burry has warned both companies are overvalued. Last week Burry posted on X, "Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play," in what some think is his way of saying there is an AI bubble."
Technology stocks fell amid fears of an AI bubble, a prolonged federal government shutdown, and consumer sentiment slipping toward record lows. Economic data showed October layoffs at their highest level for the month in 20 years, and hiring slowed to the lowest point in 14 years, according to Challenger, Gray & Christmas. Despite strong third-quarter earnings, the Nasdaq dropped about 1% for a second consecutive day and faced its worst weekly performance since April. Major tech names declined — Arm -4%, AMD -3%, Nvidia -1%, Tesla -3% — amid worries about high valuations and AI-driven layoffs. Michael Burry bought sizable puts on Nvidia and Palantir totaling roughly $187.6 million and $912 million.
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