Michael Burry Maintains Bearish Stance on AI Stocks Despite Market Gains
Michael Burry, known for his contrarian investing style, has continued to hold bearish positions in several artificial intelligence-related stocks despite significant gains during August. Palantir Technologies (PLTR), Nvidia Corporation (NVDA), and Micron Technology Inc. (MU) were among the top performers that moved against his short bets. Burry maintained out-of-the-money put options on these names, even as their stock prices surged due to strong earnings reports and positive market sentiment. Palantir's second-quarter results showed a 93% year-over-year revenue increase with robust U.S. commercial growth and high free cash flow. Despite this performance, Burry remains skeptical of the company’s valuation, arguing that its current price assumes near-perfect execution indefinitely without room for error. He has compared the AI industry buildout to pre-2008 housing market conditions. Burry's bearish stance is not based on weak fundamentals but rather concerns about overvaluation and speculative trading in the sector. His positions have grown as losses mounted, with only his bet against Nvidia reportedly unprofitable so far.
Topics: AI stocks Michael Burry Micron Nvidia Palantir short positions