"Dr. Michael Burry, the brilliant investor and trader who bet against the housing market before the Great Financial Crisis market meltdown, recently disclosed his new positions, which include massive bets against notable AI high-flyers Nvidia ( NASDAQ:NVDA) and Palantir ( NASDAQ:PLTR). Undoubtedly, Dr. Burry is a genius who not only knows how to take a contrarian position but also knows how to make massive bets that some, including Palantir CEO Alex Karp, would consider "egregious" or even "bat-- crazy"."
"While he has been quite vocal about the state of the AI bubble in recent quarters, I think that actions speak a heck of a lot louder than words. And it doesn't really get louder than a $1 billion bet against two of the biggest forces in AI. Though Dr. Burry doesn't have a perfect batting average, I do think investor caution is warranted, especially when it comes to the market's pricier AI stocks."
"Whether the big bearish bets by Burry are a sign of dire things to come for the AI trade remains to be seen. Either way, investors should know where they stand relative to the brilliant investor behind The Big Short. Indeed, it seemed crazy to bet against housing before 2008 hit. However, when all was said and done, it was Dr. Burry and a few other bears who were proven to be geniuses."
Dr. Michael Burry has taken massive bearish positions, reportedly about $1 billion, against AI leaders Nvidia and Palantir. He previously profited by shorting housing before the 2008 crisis, demonstrating a contrarian track record. The sizable bets reflect pronounced skepticism about current AI stock valuations and the potential for an AI bubble. Investors are advised to reassess heavy exposure to pricey AI names and consider taking profits rather than indiscriminate liquidation. The piece also notes the possibility of a 10–20% correction in some large banks while Berkshire Hathaway accumulates cash and pauses buybacks.
Read at 24/7 Wall St.
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