Shares in two closely watched AI-adjacent companies, Nvidia Corporation and Palantir Technologies, are falling this morning. Currently, Nvidia shares are down more than 2.2% and Palantir shares are down more than 6%.
The share price drops of two of the most prominent AI companies come as investors seem increasingly worried that the AI boom is starting to look more like an AI bubble, reminiscent of the dotcom bubble of the late ’90s and early 2000s.
In part due to these concerns, an increasing number of investors have recently begun betting against the stocks of companies benefitting from the artificial intelligence boom—including Michael Burry, the investor who became famous for betting against the housing market before the 2008 financial crash. Here’s what you need to know.
“Big Short” investor bets against Nvidia and Palantir
In the years leading up to the 2008 housing market crash, investor Michael Burry made a killing by shorting housing-related stocks after seeing signs of the then-upcoming housing market crash that few others noticed.
In 2015, Burry was immortalized in The Big Short, the Oscar-winning film about the 2008 financial crash, in which he was played by Christian Bale.
Burry has since gained a substantial following among some investors, and so his investment moves often gain widespread attention. Recently, his move has been to bet against the stock prices of Nvidia (Nasdaq: NVDA) and Palantir (Nasdaq: PLTR).
As noted by Bloomberg, Bury’s Scion Asset Management recently revealed in a 13F regulatory filing that it bought put options on NVDA and PLTR.
The news of Scion’s puts followed a Halloween post from Burry on X in which the hedge fund manager issued a cryptic post reading “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play,” along with an image of his Big Short character played by Bale.
Burry’s puts seem to have struck a nerve with Palantir CEO Alex Karp, who on Tuesday told CNBC’s Squawk Box that the companies Burry is betting against “are the ones making all the money, which is super weird.”
Karp added that “The idea that chips and ontology is what you want to short is batshit crazy.”
Then again, plenty of people thought Burry was crazy for shorting housing stocks in the years ahead of the 2008 crash.
Palantir’s Tuesday share slide comes after the company reported Q3 earnings yesterday, in which it saw revenue climb 63%. The software company has been among the highest-growth stocks of 2025.
Fears of an AI bubble loom large
Regardless of whether Burry’s puts against Nvidia and Palantir end up being the right move, his move seems to have spurred at least some investors to offload NVDA and PLTR shares, as of the time of this writing.
It should also be noted that Burry is far from the only one who sees signs of an AI bubble. Many investors and industry experts have begun to question whether the industry is in a bubble—and what would happen if that bubble pops.
For instance, an October Bank of America Global Research survey found that 54% of investors believe AI stocks are in a bubble, as Reuters recently reported.
Even so, today’s share price drops in NVDA and PLTR are minuscule compared to their surging stock prices in recent years. Year-to-date, Nvidia has seen its stock price surge more than 50% and PLTR is up more than 150%.
Over the past 12 months, NVDA has risen more than 48% and PLTR has risen more than 350%.
