Michael Burry expects a decline in Nvidia and Palantir stocks.

Michael Burry's Worrisome Investment Move

The investor Michael Burry, known for predicting the 2008 financial crisis, announced that he has taken short positions on Nvidia and Palantir shares through Scion Asset Management. Burry's decision has stirred significant reactions in the markets.

Bearish Outlook with Put Options

Following the 13F disclosures made on Monday, it was noted that Burry's purchase of put options for Nvidia and Palantir aims to profit in case share prices decline. Notably, Palantir's shares fell by as much as 8.1% in pre-market trading after analysts warned about the stock's rapid rise, while Nvidia declined by approximately 2.6%.

Investor Concerns Are Growing

OpenAI, Nvidia, and other AI-focused companies' agreements have raised concerns about the sustainability of growth in the artificial intelligence sector. This situation is leading investors to adopt a more cautious approach in the stock market.

Scion Asset Management's Strategy

Burry's bearish bets on Nvidia are not new. Scion Asset Management revealed that it had liquidated a large portion of its publicly traded stock portfolio in the first quarter and purchased put options for Chinese technology giants listed in the U.S.