📉 Michael Burry Bets Big Against Nvidia and Palantir — $1.1B in Put Options Revealed

Nvidia (NASDAQ: NVDA) shares dropped 2% to $202.83 in premarket trading on Tuesday after new filings revealed a massive bearish bet from famed investor Michael Burry, known for predicting the 2008 financial crisis.

According to regulatory filings, Burry’s hedge fund, Scion Asset Management, purchased $187 million in Nvidia put options, signaling expectations of a potential decline in the chipmaker’s stock price.

Scion also revealed $912 million in Palantir (NYSE: PLTR) puts, making these two trades together account for roughly 80% of the fund’s portfolio.

However, it remains unclear whether these positions are still active, as 13F filings can lag by up to 45 days.

The disclosure comes at a time when AI-related stocks like Nvidia and Palantir have surged throughout 2024, with valuations reaching record highs. Burry’s move suggests caution amid growing concerns of overheating in the AI and tech sector.

By Md Golam Rabbani