Michael Burry's $1.1 Billion Short Sale Move

Michael Burry's New Short Selling Strategy

Michael Burry, who gained attention in financial markets for predicting the 2008 Global Financial Crisis, has now made a significant move in the artificial intelligence (AI) sector. Like the character played by Oscar-winning actor Christian Bale, the tactics of this investor against stock market bubbles are being eagerly watched.

1.1 Billion Dollar Position

The renowned investor has taken a total short position of 1.1 billion dollars in Nvidia and Palantir stocks. This strategy raises doubts about whether the rise in AI stocks carries sustainable value. Burry purchased put contracts worth 187 million dollars on Nvidia shares and 912 million dollars on Palantir shares.

Warning Investors

Burry shared a message on the social media platform X, stating, “Sometimes we can see the bubbles. Sometimes there’s something we can do about it. Sometimes the only way to win is not to play the game.” This warning indicates that investors need to closely monitor the pressures AI stocks are placing on the index.

Market Impact

Following the announcement of Burry’s short positions, Nvidia shares experienced a decline of approximately 4%, while Palantir shares saw a drop of around 8%. This situation heightens concerns among investors that, like Burry’s previous predictions, there may be another significant market correction this time.

Discussions on the Technology Bubble

Investor interest in the potential of artificial intelligence has risen significantly over the past year, bringing market conditions to overheating levels. Burry's predictions and reports published by MIT raise questions about whether these high valuations are permanent. Part of investments made in innovative companies may return to the market with “zero yield.”