Key Takeaways
Scion Asset Management, the firm run by “The Big Short” investor Michael Burry, revealed put options against Nvidia Corp. (NVDA) and Palantir Technologies Inc. (PLTR) with a notional value of nearly $1.1 billion, doubling down on a bearish bet against the artificial intelligence sector.
"The two companies he’s shorting are the ones making all the money, which is super weird," Palantir CEO Alex Karp said on CNBC in response to Burry's initial position. "The idea that chips and ontology is what you want to short is bats— crazy."
According to Scion’s 13F filing, the firm held put options on 1,000,000 shares of Nvidia and 5,000,000 shares of Palantir. The disclosure comes as Palantir posted record financial results, with Q1 revenue surging 85% year-over-year to $1.63 billion, fueled by a 133% increase in its U.S. commercial business. The data analytics firm subsequently raised its full-year 2026 revenue guidance to between $7.650 billion and $7.662 billion.
The dueling perspectives highlight a core debate in the market: whether the AI boom is a sustainable technology shift or a speculative bubble. Burry, who gained fame for his profitable bet against the 2008 housing market, has repeatedly warned of a bubble, while bulls point to accelerating growth. Wedbush analyst Dan Ives described Palantir as an “AI powerhouse,” arguing the current expansion is only in its “third inning.”
Burry’s bearish stance on the two AI leaders contrasts with other moves in his portfolio. The same filing showed Scion increasing its holdings in software companies such as Microsoft, PayPal, and Adobe.
The opposing views from Burry and Wall Street analysts set up a key test for the AI sector. Palantir’s stock trades at a high forward price-to-earnings ratio of 75, implying significant growth is already priced in. The firm’s ability to meet its aggressive new guidance in its next earnings report will be a critical data point for investors weighing the "Big Short" thesis against the ongoing AI boom.
This article is for informational purposes only and does not constitute investment advice.
