Michael Burry’s Bold Short Bet Signals Big Risk in the AI Boom

Legendary contrarian investor Michael Burry — best known for calling the 2008 housing‑market collapse in what became the film The Big Short — is turning his radar toward the artificial‑intelligence (AI) surge by placing what amounts to a major bet against the sector. According to recent regulatory filings, Burry’s firm Scion Asset Management holds massive put options on NVIDIA Corporation (NVDA) and Palantir Technologies (PLTR) — together representing approximately 80 % of the disclosed portfolio. Burry argues the current AI infrastructure build‑out is hiding dangerous accounting and depreciation risks. He warns that hyperscale tech giants are spending heavily on chips and servers that depreciate rapidly, yet are not fully accounting for that in earnings forecasts — creating what he sees as a bubble. The timing is notable: despite soaring valuations for AI‑linked stocks, Burry is doubling down on a short posture. It’s a radical shift for an investor previously resting on cautious sideline positions. His move has injected fresh jitters into markets already wrestling with signs of froth in the tech trade. What this could mean: If Burry is right, major correction ahead in AI‑heavy stocks whose valuations assume endless growth. If he’s wrong, he could be fighting the tide of sentiment that still believes AI is the next frontier. Either way, his contrarian stance is forcing a re‑examination of how much risk is baked into the AI boom — from chip supply‑chain constraints to profitability of massive infrastructure spend. As Burry himself once cryptically put it: “Sometimes, we see bubbles. Sometimes, the only winning move is not to play.” #MichaelBurry #AIbubble #Nvidia #Palantir #SlimScan #GrowthStocks #CANSLIM