Renowned investor Michael Burry has once again captured global attention after making bold moves in the stock market and issuing a stark warning about what he believes to be an emerging bubble in technology stocks. The famed “Big Short” investor, known for predicting the 2008 financial crisis, has revealed a major bearish bet against some of the most hyped AI-driven companies in the United States.
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Michael Burry’s New Market Warning
Michael Burry has returned to social media after a two-year hiatus with a cryptic but powerful message: “Sometimes, we see bubbles. Sometimes, the only winning move is not to play.” The post immediately drew attention from investors and financial analysts, many interpreting it as a warning directed at the artificial intelligence (AI) and technology sectors.
The timing of his post aligns closely with a regulatory filing showing that Burry’s firm, Scion Asset Management, has taken massive put-option positions against two major players in the AI boom—Palantir Technologies and Nvidia Corporation.
Massive Put Bets Against AI Giants
In his most recent 13F filing, Michael Burry’s fund disclosed an aggressive stance against AI-driven companies that have seen explosive growth this year:
- Five million put options on Palantir Technologies (PLTR)
- One million put options on Nvidia Corporation (NVDA)
These positions collectively signal one of the most bearish bets Burry has made in recent years. Analysts estimate the Palantir put position alone could be valued at nearly $900 million, suggesting Burry is wagering heavily on a correction in AI-related stocks.
Both Palantir and Nvidia have posted enormous gains this year—Palantir is up more than 170% year-to-date, while Nvidia continues to dominate the chip market with record-breaking earnings. However, Burry appears unconvinced that such rapid growth is sustainable, suggesting that the current AI enthusiasm may echo the dot-com bubble of the early 2000s.
A Shift in Strategy: From Tech to Defense
Beyond the headline-grabbing puts, Burry’s filings reveal a subtle yet important strategic shift within Scion Asset Management. While scaling down exposure to high-flying technology names, the fund has reportedly increased holdings in defensive sectors such as energy and healthcare—industries traditionally viewed as safe havens during market volatility.
This adjustment indicates Burry may be positioning his portfolio for potential market turbulence ahead. The move aligns with his long-standing reputation for contrarian investing—stepping back when others rush in.
Why Michael Burry’s View Matters
Michael Burry’s market outlook has historically been a leading indicator of potential economic shifts. His 2008 subprime mortgage short was one of the most profitable and prescient trades in modern history, earning him immense credibility among professional investors and retail traders alike.
His current warnings carry significant weight for several reasons:
- He’s targeting the heart of the AI boom. Burry’s focus on Palantir and Nvidia indicates skepticism toward the broader narrative driving AI valuations.
- He’s seen this before. Burry has repeatedly drawn parallels between the speculative frenzy in today’s markets and previous bubbles.
- He’s acting, not just talking. The sheer size of his put positions shows he’s willing to back up his beliefs with capital, not just commentary.
The Market Context: AI Stocks at Historic Highs
Throughout 2025, AI-related companies have dominated financial headlines. Investors have poured billions into tech firms promising breakthroughs in machine learning, data analytics, and robotics. Palantir, for instance, has built its brand as a leader in government and commercial AI integration, while Nvidia has become the backbone of global AI computing infrastructure.
However, as valuations soar to record levels, concerns have emerged about overextension. Price-to-earnings ratios for leading AI firms are now well above historical averages, raising fears of unsustainable growth. Burry’s bearish positions appear to reflect these same concerns, signaling that he believes the hype may have outpaced fundamentals.
Burry’s Return to the Public Eye
Michael Burry’s reemergence on social media after years of silence has amplified his message. Known for deleting his posts shortly after sharing them, Burry’s online appearances are often brief but impactful. His latest post, featuring the phrase “the only winning move is not to play,” evokes his cautious approach and mirrors his actions leading up to the 2008 crash, when he urged restraint amid market mania.
In previous years, Burry has warned about multiple areas of excess—from meme stocks and cryptocurrencies to speculative tech valuations. His recurring theme remains consistent: markets can ignore risk for long periods, but eventually, reality reasserts itself.
What Could Happen Next
While no investor, even one as seasoned as Michael Burry, can predict the exact timing of market reversals, his warnings tend to precede significant corrections. Here are a few possible scenarios that could unfold:
- Tech Sector Pullback: A slowdown in AI demand or disappointing earnings could trigger a correction in companies like Palantir and Nvidia, validating Burry’s bearish positions.
- Bubble Resilience: Continued optimism and strong earnings might sustain current valuations, in which case Burry’s puts could expire worthless.
- Broader Market Rotation: Investors may gradually shift capital from tech into more stable sectors like healthcare, utilities, and energy, aligning with Burry’s portfolio shift.
Investor Takeaways
For everyday U.S. investors, Michael Burry’s warning doesn’t necessarily signal an immediate crash but rather a call for caution and balance. Key takeaways include:
- Evaluate risk exposure: Review portfolios for over-concentration in high-growth, high-valuation tech names.
- Diversify intelligently: Consider adding exposure to less volatile, income-generating sectors.
- Stay informed: Watch market indicators such as tech stock momentum, volatility indexes, and macroeconomic trends like interest rates.
- Avoid emotional trading: Burry’s contrarian success stems from patience and data-driven conviction, not panic or speculation.
Burry’s Legacy and Influence
Michael Burry’s career stands as a testament to disciplined investing and skepticism of herd behavior. From his early days managing Scion Capital to his portrayal in The Big Short, Burry has consistently demonstrated an ability to identify systemic risks before they become obvious to the broader market.
Today, his warnings about an AI bubble echo similar sentiments expressed by other high-profile investors who question the sustainability of exponential growth in tech valuations. Whether history repeats itself remains to be seen, but Burry’s voice ensures that investors at least pause to reassess the narrative.
Final Thoughts
Michael Burry’s latest moves highlight his enduring belief that market manias always come with a price. His significant bearish positions against Palantir and Nvidia—paired with his cryptic warning about bubbles—suggest he sees parallels between today’s AI-driven optimism and the speculative excesses of past eras. As always, whether his prediction proves right or premature, one thing is certain: when Michael Burry speaks, Wall Street listens.
What do you think of Michael Burry’s latest warning? Do his moves make you more cautious about AI stocks? Share your thoughts in the comments below.