The main short seller returns to bearish AI giants: Buy put options on Palantir and Nvidia, warning of a bubble.

Investor Michael Burry, known for predicting the subprime mortgage crisis, has once again sounded the alarm for the market. According to the latest 13F filing, his fund Scion Asset Management purchased 5 million put options on Palantir and 1 million put options on Nvidia, with a notional value exceeding $1 billion. Just recently, he hinted that an “AI bubble is forming,” and this symbolic bet on the decline of two major AI representative stocks continues his consistent pessimistic stance.

Big Short Burry Returns X: Forecasting the AI Bubble, Game Over

After nearly two years of silence, the protagonist prototype of “The Big Short,” Michael Burry, recently resurfaced on X, posting a line from the movie “WarGames (”: “Sometimes, we see bubbles. The only winning move is not to play.” This hints that the current AI frenzy is reminiscent of the internet bubble of 2000.

He updated his X account name to “Cassandra Unchained,” echoing the image of the “prophet who can foresee the future but no one believes” from Greek mythology. In his self-introduction, he even predicted a hint that he would make a prophetic statement in December.

)The S&P 500 surged 85%, but experts warn of a potential repeat of the 2000 internet bubble?(

$1 billion put options: Symbolic bearish on Palantir, Nvidia

According to the latest filing documents from the US SEC, Burry's asset management company Scion revealed its recent investment portfolio, which is consistent with his bearish stance on AI:

Buy 5 million units of Palantir )$PLTR( put options, with a notional value of approximately 912 million USD.

Buy 1 million put options on Nvidia )$NVDA(, with a notional value of approximately 186 million dollars.

It is worth noting that Burry is “buying put options )Buy Put(”, which indicates that he expects the stock price to fall significantly. This is an options strategy with limited risk and potentially unlimited profit.

At the same time, these figures represent the notional value )notional value(, not the actual invested capital. Burry only needs to pay a small amount of “premium )premium(” to hold a large position, leveraging small investments for large returns, and conveying a bearish signal.

Non-comprehensive bearish: holding medical and energy stocks

In addition to being bearish on AI, Scion's position report also shows that he has a cautiously optimistic attitude towards certain industries:

New sportswear brand Lululemon )LULU(, medical services company Molina Healthcare )MOH(, savings and education plan company SLM Corp )SLM( and other holdings.

Buy call options for multinational energy services company Halliburton )HAL( and biotechnology company Pfizer )PFE(.

At the same time, liquidating growth stocks such as the cosmetics brand Estee Lauder, pharmaceutical company Regeneron, e-commerce platform MercadoLibre, and health insurance giant UnitedHealth.

This shows that Burry's strategy is not merely to bet against the market, but to reposition into the healthcare, energy, and consumer sectors.

Contrarian Player Burry Bets: Can the Doomsday Prophecy Come True?

Despite the limited actual capital invested, Burry's choice to short Palantir and Nvidia, two representative companies symbolizing the AI generation, holds strong symbolic significance. This also continues his consistent pessimistic stance before the 2008 financial crisis.

However, looking back at his past predictions, the “Sell” post from 2023 is still the most well-known, as the S&P 500 index has risen by 75% since then. Whether it is a bubble or not can only be left for the readers to interpret.

)OpenAI's valuation skyrockets to $500 billion, renowned investor James Anderson expresses concerns about an AI bubble(

This article discusses the return of the short-selling protagonist looking bearish on AI giants: buying put options on Palantir and Nvidia, warning of a bubble. First appeared in Chain News ABMedia.