{"id":1497,"date":"2025-11-08T03:05:25","date_gmt":"2025-11-08T08:05:25","guid":{"rendered":"https:\/\/www.decentralnetwork.org\/news\/?p=1497"},"modified":"2025-11-13T03:07:47","modified_gmt":"2025-11-13T08:07:47","slug":"michael-burry-short-position","status":"publish","type":"post","link":"https:\/\/www.decentralnetwork.org\/news\/michael-burry-short-position\/","title":{"rendered":"Michael Burry\u2019s $1.1B Bet Against Nvidia and Palantir Shakes AI Market"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Michael Burry, the famous investor from The Big Short, is making headlines again. The man who predicted the 2008 housing crash has placed a <strong>$1.1 billion bet against Nvidia and Palantir Technologies<\/strong>, two of the biggest names in artificial intelligence.<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Michael Burry\u2019s move became public on Monday through new filings that showed he used <strong>put options<\/strong> to short both companies. The news quickly hit the market, and tech stocks started dropping right away.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By Tuesday, <strong>Palantir\u2019s stock had fallen as much as 16%<\/strong> before closing about <strong>8% lower<\/strong>. The fall happened even though the company had <strong>strong third-quarter earnings<\/strong> and raised its full-year forecast. <strong>Nvidia\u2019s stock also dipped 2\u20134%<\/strong>, while the <strong>Nasdaq Composite<\/strong> recorded its <strong>biggest one-day drop in nearly a month<\/strong>\u2014around <strong>2%<\/strong>. All the stocks of so-called <em>Magnificent Seven<\/em> AI group ended the day with a loss.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The sell-off spread overseas, too. <strong>Asian and European markets<\/strong> dropped in the following days, especially in <strong>Japan and South Korea<\/strong>, as investors began worrying about high tech valuations around the world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Palantir has had a harder time bouncing back than Nvidia. The data analytics firm now trades at a <strong>price-to-earnings ratio of about 254<\/strong> and a <strong>price-to-sales ratio near 115<\/strong>. Those high numbers make the stock more sensitive to selling pressure. Palantir is also <strong>trading below its 50-day average<\/strong>, which some traders see as a bearish signal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Nvidia<\/strong>, on the other hand, handled the pressure better. The company, which owns about <strong>80% of the AI chip market<\/strong>, never dropped below its 50-day line. Many analysts say its strong fundamentals and tech leadership helped limit the damage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even so, both stocks are still below their previous highs. Burry\u2019s short bet has brought new caution into the AI market. Some investors are now rethinking whether these stocks are priced too high.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">His move came just as major Wall Street leaders started warning about possible market corrections. <strong>CEOs from Morgan Stanley and Goldman Sachs<\/strong> both said investors should be ready for <strong>10\u201320% drops<\/strong> in the next couple of years. <strong>Deutsche Bank<\/strong> has also started looking at ways to protect itself from heavy exposure to AI-related stocks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Michael Burry also called out what he sees as <strong>\u201ccircular financing\u201d<\/strong> in the AI world\u2014where big tech firms fund or lend to partners like <strong>OpenAI<\/strong>, <strong>Oracle<\/strong>, or <strong>CoreWeave<\/strong>, who then spend that money on Nvidia\u2019s chips. Analysts at <strong>Seaport Global Securities<\/strong> said this looks like \u201c<strong>bubble-like behavior<\/strong>\u201d and questioned if AI demand is really as natural as it seems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Palantir CEO <a href=\"https:\/\/en.wikipedia.org\/wiki\/Alex_Karp\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/en.wikipedia.org\/wiki\/Alex_Karp\" rel=\"noreferrer noopener\">Alex Karp<\/a><\/strong> didn\u2019t hold back. He fired back at Michael Burry, calling his short \u201cbatshit crazy.\u201d Karp said the move will push his company to perform even better \u201cto make them poorer.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For now, investors are watching closely. Whether Michael Burry is right again or just early, his bet has reminded everyone that even the hottest AI stocks aren\u2019t immune to risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">*Image source: Tony Avelar\/Bloomberg via Getty Images<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read: <strong><a href=\"https:\/\/www.decentralnetwork.org\/news\/canada-stablecoin-regulations\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.decentralnetwork.org\/news\/canada-stablecoin-regulations\/\" rel=\"noreferrer noopener\">Canada Plans New Stablecoin Rules in 2025 Budget<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Michael Burry, the famous investor from The Big Short, is making headlines again. The man who predicted the 2008 housing &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Michael Burry\u2019s $1.1B Bet Against Nvidia and Palantir Shakes AI Market\" class=\"read-more button\" href=\"https:\/\/www.decentralnetwork.org\/news\/michael-burry-short-position\/#more-1497\" aria-label=\"Read more about Michael Burry\u2019s $1.1B Bet Against Nvidia and Palantir Shakes AI Market\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":1498,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9],"tags":[671,678,673,677,672,676,670,667,668,680,674,675,679,669,681],"class_list":["post-1497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-ai-stock-valuations-under-pressure","tag-ai-tech-stocks-correction-fears-2025","tag-circular-financing-in-ai-companies-explained","tag-investor-sentiment-shift-in-ai-stocks","tag-michael-burry-1-1-billion-ai-short-bet","tag-michael-burry-ai-market-warning","tag-michael-burry-hedge-fund-scion-asset-management","tag-michael-burry-short-position-on-nvidia-and-palantir","tag-nvidia-and-palantir-stock-market-reaction","tag-nvidia-dominance-in-ai-chip-market-2025","tag-nvidia-stock-performance-after-burrys-short","tag-palantir-ceo-alex-karp-reacts-to-burry-short","tag-palantir-stock-drops-after-michael-burry-short","tag-the-big-short-investor-bets-against-ai-stocks","tag-wall-street-warns-of-market-correction-2025","resize-featured-image"],"jetpack_featured_media_url":"https:\/\/www.decentralnetwork.org\/news\/wp-content\/uploads\/2025\/11\/Michael-Burry-short-position-on-Nvidia-and-Palantir-8nov25.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/posts\/1497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/comments?post=1497"}],"version-history":[{"count":2,"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/posts\/1497\/revisions"}],"predecessor-version":[{"id":1500,"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/posts\/1497\/revisions\/1500"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/media\/1498"}],"wp:attachment":[{"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/media?parent=1497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/categories?post=1497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.decentralnetwork.org\/news\/wp-json\/wp\/v2\/tags?post=1497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<!-- This website is optimized by Airlift. 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