Michael Burry, known for predicting the 2008 US housing crisis, is now short on Nvidia and Palantir

Michael Burry, the investor who famously predicted the US mortgage crisis, that became the trigger for the global financial crisis of 2008, has disclosed bearish positions on Nvidia Corp. and Palantir, the former being the most valued company in the world, and the latter being the most expensive stock on the S&P 500 index.

As per his latest 13F regulatory filings, Burry's Scion Asset Management has disclosed buying put options of Nvidia and Palantir. Put options generally profit from a decline in stock prices. The disclosures, made on Tuesday morning US Time, led to a 4% drop in shares of Nvidia, while Palantir fell over 8% despite raising the full year earnings guidance and convincingly beating street estimates for the ongoing quarter.

Nvidia recently crossed $5 trillion in market capitalization as the AI frenzy continued to propel these stocks higher, subsequently taking the US markets higher to record levels with them. Shares of Palantir, who have surged 175% so far in 2025, trade at over 80 times one-year forward price-to-sales, which made it the most expensive stock trading on the S&P 500.

Burry warned of an impending bubble within this space in a cryptic post on social media last week. In a post on "X", Burry included an image of a character based on him from the film The Big Short, along with a warning, "sometimes, we see bubbles."

This is not the first time that Burry has bet against Nvidia. During the January-March period, Burry's firm Scion had disclosed that they had nearly liquidated their entire equity listed portfolio and bought put options on Nvidia and another handful of US-listed Chinese tech giants. Nvidia's shares had declined 20% during the January-March period. They fell further in April during the tariff tantrums before more than doubling from those levels as of date.

Scion’s first-quarter filing included an additional disclosure stating that the puts being disclosed “may serve to hedge long positions which are not eligible to be reported” in the 13F. Monday’s third-quarter filing did not include a similar statement.

(With inputs from agencies)