The post Michael Burry Bets Against Nvidia Amid Potential AI Bubble Concerns appeared on BitcoinEthereumNews.com.

Michael Burry, renowned for predicting the 2008 housing crash, has placed bets against Nvidia and Palantir stocks, warning of an AI bubble similar to the dot-com era. He holds put options predicting sharp declines by 2027, citing overvaluation and unsustainable practices despite strong market performance. Michael Burry’s put options target Nvidia and Palantir, valued at $5 trillion combined, betting on a 37%+ drop. Burry compares the AI hype to the dot-com bubble, focusing on data infrastructure limits and cross-investments. His $10 million bets could yield over $1 billion if stocks fall as predicted; Palantir to $50, Nvidia to $110 by 2027. Michael Burry warns of AI bubble bursting in Nvidia, Palantir: Bets against $5T giants citing overvaluation, Enron-like deals. Will history repeat? Stay ahead—read expert analysis now! (152 characters) What is Michael Burry’s AI Bubble Prediction? Michael Burry’s AI bubble prediction centers on Nvidia and Palantir Technologies, two leaders driving stock market highs. The investor, immortalized in The Big Short, argues the sector’s valuations echo the dot-com frenzy, driven by hype over data transmission and infrastructure rather than sustainable growth. He anticipates a correction, though timing remains uncertain. Why Is Michael Burry Betting Against Nvidia and Palantir? Michael Burry disclosed put options against Nvidia and Palantir in early November, positions totaling around $10 million that could multiply significantly if shares plummet. For Palantir, he criticizes heavy reliance on government contracts, excessive executive compensation, and competition from firms like International Business Machines. Palantir trades near $200, but Burry’s bet profits if it falls to $50 by 2027. Nvidia faces scrutiny over customer financing resembling Enron tactics, where the company funds purchases by clients like Oracle and Meta Platforms. Burry questions chip longevity accounting, suggesting inflated earnings. His wager succeeds if Nvidia drops 37% from $190 to $110 by 2027. These concerns…

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Filed under: News - @ December 28, 2025 9:26 am