"Burry's fund Scion Asset Management, based in Saratoga, Calif., disclosed on Monday that it bought puts bets that share prices will fall on two stars of the AI wave: Nvidia and Palantir. Scion bought roughly $187.6 million in puts on Nvidia and $912 million in puts on Palantir, according to Securities and Exchange Commission filings. Burry, 54, is known for his prophetic call that the U.S. housing market would collapse in 2008."
"Now Burry is betting against the hottest AI stocks on the market at a time when concerns are mounting about a bubble. Tech and AI stocks have carried the market in recent months. The S&P 500, which is increasingly concentrated in tech companies, is trading at historically expensive levels. Meanwhile, the circular financing of AI deals has raised eyebrows on Wall Street, with many tech companies entwined in a massive web of deals with each other."
Michael Burry's Scion Asset Management purchased sizeable put options against Nvidia and Palantir, totaling roughly $1.0996 billion. The positions reflect a bearish view that AI-focused shares may decline as valuations rise. Tech and AI stocks have driven recent market gains, pushing the S&P 500 to historically expensive levels and concentrating market risk in a few companies. Circular financing among tech firms and heavy spending have raised concerns about sustainable profit growth. Market volatility followed, with the Nasdaq and S&P 500 dropping. Burry signaled skepticism on social media before disclosing the fund's bearish trades.
Read at www.mercurynews.com
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