'Big Short' investor Michael Burry is betting big against Nvidia and Palantir

A regulatory filing showed that his hedge fund, Scion Asset Management, has bought put options on Nvidia $NVDA and Palantir $PLTR Technologies. Those are contracts that gain value when share prices fall.

Burry rose to fame for his bet against the U.S. housing market before the 2008 crash. He was played by Christian Bale in the resulting movie, "The Big Short," based on Michael Lewis's book.

Debate has intensified in recent weeks over whether the AI rally has become a bubble. Both the S&P 500 and Nasdaq $NDAQ 100 recently hit record highs even as some investors warn that valuations in the sector are too high.

Scion’s filings show it bet about $187 million against Nvidia and roughly $912 million against Palantir. Both new positions were added in the third quarter.

Days before, Burry posted a warning to retail investors on X $TWTR. He wrote: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”

Shares in both companies have soared this year as investor enthusiasm for AI has driven record valuations. Nvidia became the world’s first $5 trillion company earlier this year, while Palantir’s stock has climbed 174% in 2025 amid surging demand for AI and defense technology.

Palantir raised its annual revenue outlook on Monday, but its shares were down as much as 8% in premarket trading Tuesday as analysts pointed to the stock’s high valuation. Nvidia shares also slipped as much as 2.6%.

Burry has warned before of overheated markets and previously held short positions against Nvidia. Earlier this year, Scion liquidated most of its portfolio and bought puts on several U.S.-listed Chinese tech firms, filings showed.

Scion also revealed call options on Halliburton $HAL and Pfizer $PFE. Call options are wagers that profit if share prices rise. The fund held eight positions at the end of September, down from 15 at the end of June. They were valued at about $1.38 billion.