‌ ​ Michael Burry, the investor famed for his prescient ​call against the 2008 housing bubble, is taking a ⁢contrarian stance against the current surge ⁢in artificial intelligence (AI) stocks.⁢ He has established short positions in both Palantir Technologies and Nvidia, according to recent regulatory ⁢filings. This‌ move signals‍ skepticism about the valuations of companies​ benefiting from the AI boom, even as many unprofitable tech stocks have seen⁣ gains fueled by investor enthusiasm.

Burry disclosed a‌ short position against defense and data analytics firm Palantir using derivatives designed to profit from a decline in the company’s share ​price, as reported ‍in a U.S. regulatory filing earlier this month. Palantir’s ‍stock has risen approximately 130% year-to-date as ‍of May 23,⁢ 2024.

‍ He also revealed a smaller​ short position against‍ AI chipmaker ⁤ Nvidia.

Burry’s Track​ Record and Scion ‌Capital

Burry gained prominence for accurately ‌predicting the collapse of the mortgage-backed securities market in 2008, a position detailed ⁣in Michael Lewis’s book, The Big Short. He founded Scion Capital, which‌ successfully bet against these⁣ securities.Following this success,he closed Scion⁣ Capital in 2008 and ⁤later reopened it under the name Scion Asset Management.

Palantir and Nvidia: A⁣ Closer Look

‌ ⁣ Palantir, co-founded by Peter Thiel, specializes in data analytics platforms, serving both government⁣ and commercial clients. It’s stock has been volatile,‍ but‌ has experienced notable growth in 2024, driven by increased demand for its AI-powered solutions.
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Nvidia,a leading designer of graphics​ processing units ​(GPUs),has become central to the AI revolution. Its gpus are widely used for ​training and deploying AI models. ⁢The company’s stock has soared due⁤ to its dominant⁤ position in the ‌AI hardware market.

Source: Market⁢ data as of May 23,‌ 2024.