(2025-11-04) AI Stocks Waver As BigShort Investor Bets Against Palantir, Nvidia

AI stocks waver as ‘Big Short’ investor bets against Palantir, Nvidia. A months-long rally in Big Tech stocks faltered Tuesday as artificial intelligence data company Palantir was targeted by a prominent short-seller, sparking invective from CEO Alex Karp and a sell-off on Wall Street.

Michael Burry’s firm held puts on Nvidia and Palantir, a way to bet that the stock price will fall in the future. Burry’s investment position may have changed, and the form doesn’t preclude his having other investments in the AI companies’ stocks.

By the end of the trading day, Palantir had shed nearly 8 percent and Nvidia nearly 4 percent. In a sign of Big Tech’s influence in the broader stock market, the S&P 500 index closed down 1.2 percent.

Burry, who traded the medical profession for finance, grew to prominence as a hedge fund manager by betting against the housing market ahead of its 2008 debt crisis, a feat that was chronicled in “The Big Short,” a book by Michael Lewis that was adapted for the screen

Burry has since become a cult figure of sorts in the online investor community, with Reddit conversations devoted to analyzing his trades

“Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play,” Burry said in an Oct. 30 post on X.

In financial results covering the three-month period ending Sept. 30, the company posted a record $1.18 billion in revenue, marking a 63 percent year-over-year increase, alongside a profit margin of 33 percent.

In a Monday letter to shareholders, Karp attributed the company’s growth to “voracious” adopters of artificial intelligence in the United States, whose use of AI language models is “reordering human life” through “a ruthless pragmatism.”

The Big Short Guy Just Bet $1 Billion That the AI Bubble Pops. According to the Securities and Exchange Commission filings, his fund, Scion Asset Management, bought $187.6 million in puts on Nvidia and $912 million in puts on Palantir, as CNN reports.

The news of Burry’s latest short comes amid a significant AI tech selloff. Shares of Nvidia and Palantir dropped just under four percent and nine percent respectively on Tuesday, indicating shaky confidence that AI companies will be able to justify their enormous valuations due to flagging revenue growth.

As CNN points out, Burry’s track record isn’t perfect. For instance, he called in January 2023 to “sell” in a now infamous tweet, only to admit that he was “wrong” two months later. At the time, the Nasdaq 100 index entered a bull market, surging by more than 21 percent between December 2022 and March 2023.