- Expecting the AI stock bubble to burst, top short seller Michael Burry has been shorting the stock. Palantir Technologies and NVIDIA.
- He believes that demand is outpacing the actual financial results of companies.
The most famous investor to successfully short the stock in 2008, Michael Burry, has expanded his bearish bet against artificial intelligence stocks.
According to communication On social media, Berry sold all his GameStop shares and opened a direct short position on Palantir Technologies. He also holds bearish put options related to Nvidia, Oracle, and iShares Semiconductor. ETF and Invesco QQQ Trust, with maturity dates in 2027.
As for Palantir, Berry believes the company’s shares should, at best, trade for a few dozen dollars, around $46-$50. He’s betting not only on the company’s valuation but also on its business model itself. And yet, we’re talking about one of the most well-known players in the AI software market.
Shares of another key player in the computing infrastructure market, NVIDIA, are also a source of mistrust for Berry, apparently because investor expectations are exceeding the company’s financial results.
Michael Burry’s comparison of the current situation to the dot-com bubble is not without merit. The internet boom of the late 1990s demonstrated that major technological advances can lead to company revaluations. Capital flowed rapidly into the sector even before many companies had achieved sustainable profitability.
This historical comparison is becoming increasingly relevant as private tech giants prepare for intense public market scrutiny. For example, OpenAI is laying the groundwork for a potential IPO with a valuation of up to $1 trillion.
The next stage of the AI debate may be decided beyond Palantir and Nvidia. The 2026 IPO wave could reveal how much public investors are willing to pay for future growth. If OpenAI, Anthropic, and SpaceX go public with high valuations and deliver strong performance, public markets will signal continued confidence in the tech cycle.
If demand weakens, Berry’s warning will gain more authority.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making investment decisions. Read the editorial policy. https://happycoin.club/about/