"Big Short" Money Manager Michael Burry Just Bet Against Nvidia and Palantir. Is He Calling the Top of the Artificial Intelligence (AI) Boom?

• Michael Burry famously predicted the owe situation that struck successful 2007 and 2008.

• Burry has been known to stake against themes successful the banal market, and this time, his oculus is connected artificial intelligence.

• Recent regulatory filings bespeak that Burry's hedge money has opened abbreviated positions against Nvidia and Palantir.

• 10 stocks we similar amended than Nvidia ›

Michael Burry is 1 of the astir intriguing characters successful modern fiscal history. His assertion to fame is that helium was 1 of the archetypal investors to dependable the alarm that the subprime owe situation was coming, anterior to its implosion successful 2007 and 2008 -- a fiscal meltdown that yet triggered the Great Recession.

Seemingly overnight, Burry and his hedge fund, Scion Asset Management, gained personage among the "smart money" connected Wall Street. With that successful mind, it's not astonishing that helium inactive has the power to determination the superior markets.

According to Scion's latest 13F filing, Burry has recovered his caller large short(s): semiconductor elephantine Nvidia (NASDAQ: NVDA) and information mining specializer Palantir Technologies (NASDAQ: PLTR). During the 3rd quarter, Burry purchased enactment options connected some -- bets that each banal volition diminution successful value.

Is Burry sending an ominous informing that the artificial quality (AI) assemblage is owed for a correction? Let's unpack however past appears to beryllium connected Burry's side, and measure whether this lawsuit whitethorn beryllium antithetic from akin ones successful the past.

For the past 2 years, Palantir has been 1 of the astir awesome gainers successful the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC). In conscionable the past 12 months, shares person climbed by a jaw-dropping 224%.

While its momentum appears unstoppable, Burry does person a morganatic lawsuit erstwhile it comes to his suspicions surrounding the information analytics darling. From a valuation perspective, Palantir banal looks good overbought.

Its price-to-sales (P/S) aggregate of 124 is acold higher than immoderate of its peers successful the bundle landscape. What's more, Palantir's valuation continues to expand, suggesting that the banal is being fueled by unrelenting affirmative sentiment and hype.

Given Burry's past with anterior banal marketplace crashes, my hunch is that helium is drafting parallels betwixt the AI roar and the dot-com epoch of the precocious 1990s. For reference, during that period, net pioneers specified arsenic Microsoft, Amazon, and Cisco saw their P/S ratios highest successful the ranges of 30 to 50 astatine the implicit highest.

Considering Palantir's valuation is already successful a antithetic league than what investors witnessed during that play of net euphoria, it's understandable that Burry whitethorn judge the banal is connected a collision people with history.