Michael Burry Bets Against Nvidia and Palantir Stocks
Michael Burry, known as the protagonist of the movie 'The Big Short,' has reportedly bet against Nvidia and Palantir stocks, drawing significant attention from investors. His investment decision is expected to have a considerable impact on the market, with particular focus on the stock price fluctuations of these companies. According to public filings from Scion Asset Management, Michael Burry has purchased a substantial amount of put options, investing in the decline of Nvidia and Palantir's stock prices. A put option grants the right to sell a specific asset at a specific price, allowing investors to profit from the expected decline in the asset's price. In other words, Burry is betting heavily that the stock prices of these two companies will fall.
Specifically, according to filings submitted to the U.S. Securities and Exchange Commission (SEC) on November 4, 2025 (local time), Michael Burry purchased approximately $187 million worth of put options on Nvidia stock as of the end of September 2025. This equates to approximately ₩240 billion in Korean currency. Furthermore, he holds approximately $912 million in put options on Palantir stock. This amounts to roughly ₩1.2 trillion, representing a substantial portion of his investment portfolio. Buying put options is an investment strategy used to profit from an expected price decline, where the investor can exercise the right to sell the stock at a predetermined price if the stock price falls. Conversely, if the stock price rises, the investor would forgo the put option and accept the loss. Michael Burry's investment reflects his expectation that the stock prices of Nvidia and Palantir will decline in the future.
Palantir's CEO, Alex Karp, has publicly criticized Michael Burry's short position, escalating the controversy. In an interview with CNBC, Karp directly addressed Michael Burry, characterizing his investment strategy as 'an act that harms the value of the company' and strongly condemning it. Karp stated, "Burry's actions are merely pursuing short-term profits and, from a long-term perspective, undermine the company's growth potential." Alex Karp's comments are interpreted as revealing the discomfort of Palantir's management with Michael Burry's investment.
Michael Burry posted on his X (formerly Twitter) account that the reported short position may no longer be accurate. However, he did not disclose any specific details, leaving the potential change in his investment strategy unclear. Burry's ambiguous stance is exacerbating market confusion, and investors are closely monitoring his next move. Palantir has recently faced criticism from some analysts regarding its valuation after its earnings announcement, sparking controversy. This criticism has negatively impacted investor sentiment, causing Palantir's stock price to plummet nearly 8% in pre-market trading following the earnings release. This, coupled with the disclosure of Michael Burry's short position, has further intensified investors' concerns about Palantir's stock.
Nvidia's stock price also showed a decline following news of Michael Burry's put option purchase. Nvidia's stock price fell by 2.4%, suggesting that investors are paying attention to Michael Burry's investment strategy. Nvidia's stock price has recently surged due to the artificial intelligence (AI) boom, but Michael Burry's negative outlook is raising awareness among investors. Michael Burry's investment is having a significant impact on the overall investment market. Considering his past successful predictions, analysts suggest that it could alter investment sentiment towards Nvidia and Palantir's stock prices. For example, he accurately predicted the 2008 financial crisis and profited immensely by shorting the subprime mortgage market. This past track record makes investors more inclined to heed his judgment.
Meanwhile, various interpretations of Michael Burry's investment decision are emerging. Some analysts suggest that he believes Nvidia and Palantir's stock prices are excessively overvalued. Another analysis suggests that he has adopted a risk-averse strategy considering the uncertainties of the macroeconomic environment. Regardless of the reason, his investment is expected to have a significant impact on the market. The status of Michael Burry's investment strategy change remains unclear, but his investment position is acting as a significant signal to the market, reminding investors to be cautious. Continued attention to his future investment moves and the stock price fluctuations of Nvidia and Palantir is necessary. Reporter Kim Jung-ah reported on Michael Burry's bet against Nvidia and Palantir stock prices on November 5, 2025, at 00:49.
