Michael Burry's Scion Asset Management Places Major Short Bets on Nvidia and Palantir Amid AI Stock Surge

Michael Burry's Scion Asset Management has taken a large bearish position on two major AI-related tech stocks, Nvidia and Palantir, through put options valued at approximately $1.1 billion, comprising 80% of its portfolio. Burry's strategy signals his belief that the valuations of these companies are excessively high and potentially unsustainable amid the ongoing AI boom. Despite their strong market performance, including Nvidia's significant stock price increase, Burry is betting on a downturn, reflecting his contrarian and data-driven investment approach. His history of successful large-scale bets, such as predicting the 2008 housing market crash, gives weight to his current move against the AI leaders. Meanwhile, other investors like Daniel Loeb are taking a different approach by investing in international semiconductor companies like SK Hynix and Ebara, which they view as undervalued beneficiaries of AI growth. This contrast highlights differing strategies within the investment community regarding AI-related equities.