Scion Asset Management, a firm owned by investor Michael Burry, purchased put options (which generate profits when prices fall) on five million shares of Palantir and one million shares of Nvidia, transactions valued at $912 million and $187 million, respectively, according to a report filed with the Securities and Exchange Commission (SEC) for the quarter ending September 30.
Burry made a name for himself on Wall Street after betting against the U.S. real estate market in 2008.
According to specialized media outlets, the 13-F form that Burry filed with the SEC on Monday shows that the two short positions represent 80% of Scion’s portfolio and therefore constitute a significant bet on a decline in the price of this popular artificial intelligence (AI) investment.
Last week, Burry posted a cryptic message on social media on X with the warning that “sometimes we see bubbles.”
Shares in AI chipmaker Nvidia and AI software company Palantir reached record highs on Monday, with gains of 48% and 305%, respectively, over the past twelve months.
This is not the first time Burry has bet against Nvidia, according to Bloomberg. During the first quarter, Scion revealed that it had liquidated almost its entire portfolio of listed stocks and had purchased put options on the chip giant, as well as on several large Chinese technology companies listed in the US.
Source: Investing.com
