Michael Burry Bets $1.1 Billion Against AI Stocks Nvidia and Palantir
Michael Burry's Scion Asset Management has placed a $1.1 billion wager against two of the market's most high-flying AI stocks. The hedge fund acquired put options worth $912 million on Palantir and $186.6 million on Nvidia during Q3 2025, signaling a bearish stance on their stretched valuations.
Palantir trades at a staggering 417 times earnings with a price-to-sales ratio of 116, while Nvidia's multiples remain elevated at 53 times earnings. Both stocks have retreated since Burry's positions became public, with some analysts forecasting potential 50% corrections ahead.
The MOVE echoes Burry's prescient bets against overvalued assets before the 2008 crisis and dot-com crash. It comes as AI-related stocks now represent $23 trillion in market value - approaching the size of the entire U.S. economy.
