Michael Burry's 'Big Short' Intuition Shifts to AI Investments with Puts on Nvidia and Palantir
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2025
0mins
Source: SeekingAlpha
Michael Burry's Bearish Stance: Michael Burry's Scion Asset Management has taken bearish positions on Nvidia and Palantir, indicating caution towards the AI sector despite their significant market gains this year.
Market Performance and Concerns: Nvidia and Palantir have seen substantial increases in their stock prices, but recent premarket trading shows declines, prompting Burry to share charts that suggest a slowdown in cloud growth among major tech companies.
Cautionary Insights: Burry's social media posts reference historical market bubbles and caution investors against the current AI stock trends, likening his warnings to the character Cassandra from mythology.
Nvidia's Market Milestone: Nvidia recently became the first company to reach a $5 trillion market capitalization, reflecting its dominance in the AI hardware market, while Palantir continues to thrive through AI-driven contracts.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 212.450
Low
200.00
Averages
264.97
High
352.00
Current: 212.450
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rapid Cloud Growth: Microsoft's Azure and other cloud services revenue surged by 40% year-over-year, with a cloud backlog of $627 billion at the end of the period, reflecting the company's strong competitive position and future growth potential in the cloud market.
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- Strong Financial Performance: Despite a 17% drop in Microsoft's stock over the past year, the company reported an 18% year-over-year revenue increase to $82.9 billion in Q3 of fiscal 2026, with cloud services revenue soaring by 40%, showcasing resilience amid technological shifts.
- Rapid Growth in AI Business: Microsoft's AI business has surpassed a $37 billion annual run rate, growing 123% year-over-year, indicating that the company's investments in AI are yielding substantial returns and reinforcing its market leadership.
- Attractive Valuation and Investment Opportunity: With a forward P/E ratio of 20.6, below the tech sector average of 22.3, and considering its strong brand and high customer loyalty, investing in Microsoft at current levels could yield significant long-term returns.
See More
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- Massive Financing: Apollo Global Management and Blackstone have finalized a $35 billion financing deal to support Anthropic's expansion efforts, marking one of the largest private credit deals in history and reflecting strong market interest in AI infrastructure investments.
- Deepening Tech Collaboration: The deal utilizes a Special Purpose Vehicle (SPV) to purchase Tensor Processing Units (TPUs) from Google, which will be leased to Anthropic, allowing the company to keep hardware off its balance sheet and providing financial flexibility ahead of its upcoming IPO.
- Surging Memory Demand: As AI data centers expand, Micron, one of only three companies capable of producing high-bandwidth memory at scale, stands to benefit from the increasing demand for memory, despite the deal primarily relying on Google's TPUs rather than Nvidia's GPUs.
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