An investor who accurately called the 2008 housing market collapse has placed massive short bets on two of the largest firms in the US.
New 13F filing from the U.S. Securities and Exchange Commission (SEC) shows that Michael Burry’s Scion Asset Management placed $1.098 billion worth of puts on Nvidia (NVDA) and Palantir (PLTR) in Q3 of this year, predicting that the stocks would melt down.
Burry placed $912.1 million worth of puts on PLTR and $186.58 million in puts on Jensen Huang’s NVDA. Put options are used by traders and investors to hedge against potential downside risks or speculate that the underlying asset will fall.
Palantir was co-founded by venture capitalist Peter Thiel, who holds a 4.50% stake in the firm worth more than $17.602 billion.
In a post on X, Burry hints that the US stock market has entered bubble territory.
“Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
The “Big Short” investor also shares a Bloomberg chart showing how the most prominent names in the artificial intelligence sector are all linked to Nvidia.
“These aren’t the charts you are looking for. You can go about your business.”
As of Wednesday’s close, PLTR is trading at $187.90 while NVDA is worth $195.21 per share.
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