Famous investor Michael Burry, known for his prediction of the 2008 global financial crisis and the film “The Big Short”, now believes that the value of NVIDIA and Palantir will sharply decline. In his opinion, the “bubble” that has formed in the artificial intelligence market will burst soon. This was reported by Sherwood News.
The Scion Asset Management fund managed by Burry bought a $ 1.1 billion put option on 1 million NVIDIA and 5 million Palantir shares. A put option gives the investor the right to sell shares at a predetermined price. That is, Burry is confident that the price of these shares will soon fall.
The investor believes that the growing interest in artificial intelligence technologies has created “excessive value” in the market, and this situation is reminiscent of the “dotcom” crisis of the 2000s.
Although Burry has not made an official statement on the subject, in a recent post on the X platform (formerly Twitter), he said: “Sometimes the only winning move is not to play at all.”
Experts note that despite Burry’s experience, the artificial intelligence market is still growing and even the most experienced investors can sometimes make mistakes.
