Michael Burry bet 1.1 billion dollars against Nvidia and Palantir
Michael Burry – this is a legendary investor who predicted the 2008 mortgage crisis. And now he’s making a loud move again. Michael bet 1.1 billion dollars in put options against 2 major companies from the AI sector. These are Nvidia and Palantir.
For those not in the know: Burry’s story was the basis for the film “The Big Short”. He was played by Christian Bale. And put options – this is the right to sell shares at a pre-fixed price. If the market falls, the holder of such contracts earns.
His bet raises questions about a possible bubble in the AI sector. After all, the value of this segment rose sharply this year as companies actively invested in hopes of huge future revenues.
Of course, part of the bet may be a hedge rather than a pure play on an AI market crash. But the fact remains: Burry is betting on a correction in the overheated segment. And when a person who once already predicted the largest financial crisis starts making such loud moves – the market pays attention. The only question is whether he’ll be right again.
