Michael Burry (The Big Short) is betting against the AI Bubble

https://www.ctvnews.ca/business/article/michael-burry-of-the-big-short-is-back-with-cryptic-messages-and-two-massive-bets/

Burry’s fund, Scion Asset Management, disclosed on Monday that it bought puts — bets that share prices will fall — on two stars of the AI wave: Nvidia and Palantir. Scion bought roughly US$187.6 million in puts on Nvidia and $912 million in puts on Palantir, according to Securities and Exchange Commission filings.

82 points · 13 comments · view on lemmy.world

13 Comments

very_well_lost@lemmy.world · 23 pts · 290d (7 replies)

Seems like his bet has already had an effect. Nvidia is down ~8% this week, Palantir ~10%

expatriado@lemmy.world · 17 pts · 290d

gosh, faux news is going to blame it on Mamdani

SaveTheTuaHawk@lemmy.ca · 3 pts · 290d (4 replies)

That's not a bubble burst.

GreenKnight23@lemmy.world · 7 pts · 290d (1 reply)

every bubble needs a prick.

ZDL@lazysoci.al · 3 pts · 289d

You mean Sam Altman?

LoveCanada@lemmy.ca · 6 pts · 290d

Not yet. I think the burst is coming. There are plenty of signs and Ive read more than one economist, including the head of the Bank of Canada, worrying about the effects on the economy when it does: "The Bank of Canada's October 2025 Monetary Policy Report noted that a sharp correction in AI stock valuations could undermine consumer confidence in both the US and Canada, potentially leading to a widespread economic downturn."

I think the sh*tstorm is just around the corner. And those who have been crowing about their massive gains in the market are either going to wisely sell now, or get a huge beating when the rollercoaster starts to slide down.

very_well_lost@lemmy.world · 5 pts · 290d

No, it's not. But hopefully it's the beginning of a trend.

someacnt@sh.itjust.works · 1 pts · 288d

Interesting, will Burry earn money? That would mean I will earn some money, as well.

TachyonTele@piefed.social · 17 pts · 290d (2 replies)

I definitely trust Burry on this. I'm excited to see the bubble finally blow up.

Voroxpete@sh.itjust.works · 23 pts · 290d (1 reply)

Just keep in mind that even if Burry is right - and he's not always - he was three years early on the housing crisis. Personally, I fully agree that this is a bubble, but that doesn't mean it's going to break soon.

Markets can remain irrational longer than you can remain solvent.

TachyonTele@piefed.social · 14 pts · 290d

That's good point. Thank you for the temperance.

sturger@sh.itjust.works · 2 pts · 288d

Just ask ChatGPT when's the best time to short your AI stocks. Sheesh. I can't believe how dumb you non-AIs are!

/s /s (just in case)

rageagainstmachines@lemmy.world · 2 pts · 288d

ok but when do the puts expire?