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Palantir represents Burry’s largest position at $912M in notional value, with Nvidia puts at $186M, betting on a decline in AI stocks.
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Michael Burry’s Scion Asset Management allocated 80% of its $1.1B portfolio to put options against Palantir (PLTR) and Nvidia (NVDA).
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Michael Burry is the billionaire investor famous for predicting the 2008 housing crash immortalized in the book and movie titled, “The Big Short.” While he doesn’t always short stocks — Burry’s Scion Asset Management hedge fund just bet big on Molina Healthcare (NYSE:MOH) — it seems that Burry has turned his skeptical eye toward the artificial intelligence (AI) sector. In Scion’s recently filed 13F filing, the billionaire disclosed substantial put options on two of the leading AI companies: Palantir Technologies (NYSE:PLTR) and Nvidia (NASDAQ:NVDA).
These bets position him to profit if the stocks decline, signaling his doubt in the ongoing AI hype. The move raises the question of whether Burry is a contrarian warning to investors, or just another pessimistic call from an AI perma-bear.
Burry first gained widespread recognition for his role in the subprime mortgage crisis, as depicted in Michael Lewis’s book detailing the bold call. Burry shorted mortgage-backed securities ahead of the 2008 collapse, turning a massive profit for his investors while the broader market cratered.
Since then, his track record has been mixed. He correctly anticipated market turmoil in early 2020 but has also made bearish bets that didn’t pan out, such as warnings about overvalued tech stocks during bull runs.
Burry has been vocal on social media, often posting cryptic messages about market bubbles and economic risks. Just months before this filing, he hinted at concerns over inflated valuations in AI-driven equities, echoing his past critiques of market exuberance.
In the third quarter, Scion allocated roughly 80% of its $1.1 billion notional portfolio value to these put options. The largest position is in Palantir, with puts covering about 5 million shares, valued at around $912 million. The Nvidia puts are smaller but still significant, at approximately $186 million.
Puts give the holder the right to sell shares at a predetermined price, profiting if the stock falls below that strike price. Importantly, these are notional values — the actual capital outlay is much lower, as options require only a premium payment. This allows Burry to control large exposures with limited upfront cost, amplifying potential gains or losses. Scion’s overall portfolio remains concentrated — it only owns four stocks — with these AI bets dominating its holdings.
