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Michael Burry on Nvidia and Palantir

Bearish on AI infrastructure (strong)

TL;DR

Michael Burry maintained significant bearish positions against Nvidia and Palantir, viewing them as beneficiaries of an inflated AI bubble.

Key Points

  • He held short positions against Nvidia and Palantir based on regulatory filings from late 2025.

  • His bearish view on Nvidia and Palantir was part of a broader skepticism about the AI investment bubble.

  • The investor also reportedly sold a position in Cisco while maintaining bearish bets on the AI sector.

Summary

Michael Burry’s investment philosophy has led him to express significant skepticism regarding the current valuations of major technology firms, particularly those central to the artificial intelligence trend, including Nvidia and Palantir. His public filings and commentary indicated holding short positions against these companies, signaling a belief that their market prices do not reflect underlying fundamentals and are supported by speculative mania rather than sustainable growth. The core of this stance appears rooted in his characteristic deep-value approach, contrasting sharply with the high-growth narratives driving the AI sector's soaring stock prices, which he has often characterized as unsustainable or resembling past economic bubbles.

This bearish sentiment toward the high-flying AI infrastructure and data analytics firms developed against a backdrop of broader skepticism about whether the massive capital expenditure in AI can deliver commensurate returns for all players involved. While acknowledging the transformative nature of technology, his investment actions suggest a view that the market has over-discounted future success for these specific names, positioning him to profit if the bubble deflates. Furthermore, his documented trades often involved selling positions in perceived bubble stocks, such as Cisco, concurrently with taking a negative view on market leaders like Nvidia and Palantir.

Frequently Asked Questions

Michael Burry has taken a negative stance on both Nvidia and Palantir, evidenced by his firm reporting short positions against them in late 2025 filings. He views the valuation of these companies as excessively high, stemming from the speculative nature of the artificial intelligence investment cycle. His actions suggest a belief that the market has priced in too much future success for the current stock prices.

The primary evidence suggests Michael Burry was consistently bearish on both technology companies as of late 2025, viewing them as susceptible to an AI-related market correction. While his portfolio constantly evolves, his documented skepticism regarding the sustainability of high AI valuations implies a continuous negative outlook. Any significant shift away from these short positions would likely be noted in subsequent public filings.

The investor characterized the investment surge in companies like Nvidia and Palantir as forming part of an unsustainable bubble driven by hype. He positioned his fund to benefit from a potential decline in their share prices through short selling. His commentary generally aligns with a deep-value perspective that contrasts with the high-growth expectations currently priced into these market leaders.