Has Contrarian Michael Burry Found His Next Big Short? The Famed Investor Is Betting the Farm Against an Artificial Intelligence Stock That Is Up 1,290% Over the Past 5 Years

• Michael Burry, who present runs Scion Asset Management, has been skeptical astir the market's accelerated ascent for respective years now.

• Recently, Burry disclosed a ample bearish presumption successful 1 of the hottest artificial quality stocks.

• 10 stocks we similar amended than Palantir Technologies ›

Michael Burry of Scion Asset Management made a sanction for himself arsenic 1 of the fewer investors who spotted the lodging bubble of the mid-2000s earlier it popped, triggering archetypal the owe situation and past the Great Recession. He and his money astatine the clip reaped hundreds of millions of dollars successful profits aft purchasing recognition default swaps connected mortgage-backed securities that paid retired erstwhile the worth of those securities cratered. Burry, on with a fistful of different investors who saw the owe situation coming, was a taxable of the bestselling publication The Big Short, which was aboriginal made into a movie of the aforesaid name.

Burry has been bearish astir the U.S. banal marketplace broadly for respective years now. But successful his caller call, the erstwhile Stanford neurology nonmigratory seems much bearish than helium has successful the past -- oregon astatine least, he's being much outspoken astir it. And successful the 3rd quarter, Burry made a large stake against a high-flying artificial quality banal that is up by much than 1,290% successful the past 5 years.

In a caller 13F filing, Scion Asset Management disclosed that successful the 3rd quarter, the money purchased 5 cardinal enactment options with a notional worth somewhat implicit $912 cardinal connected AI information analytics institution Palantir (NASDAQ: PLTR). Scion besides purchased 1 cardinal puts connected Nvidia. The steadfast further sold galore of its holdings from the 2nd 4th and purchased respective caller agelong positions arsenic well. Burry has often changed the creation of Scion's portfolio successful caller years.

He has been connected and disconnected of X, posting infrequently, sometimes erstwhile helium is acrophobic astir the authorities of the market. Interestingly, though, helium seems a batch much outspoken lately. He's posted respective tweets successful caller weeks to asseverate that the marketplace is successful a bubble.

One of these tweets included respective charts. One illustration showed that unreality maturation has slowed successful caller years compared to the years prior; different showed that U.S. exertion superior expenditure maturation has reached a level not seen since the dot-com bubble; and the 3rd showed however spending from Nvidia and OpenAI is fueling overmuch of the AI sector.

I find it absorbing that Scion submitted its 13F to the Securities and Exchange Commission earlier the required deadline. Banks, brokers, and institutional-scale concern managers similar Burry indispensable study connected the contents of their portfolios arsenic of the extremity of each quarter, nary aboriginal than 45 days aft the extremity of that quarter. For the 3rd quarter, that would beryllium Nov. 14. Many funds and managers hold until the precise past time earlier they springiness the nationalist that glimpse into their portfolios. For instance, Warren Buffett's  Berkshire Hathaway ne'er seems to record its 13Fs earlier the time of the deadline. Scion besides filed its 13F connected the aforesaid nighttime Palantir reported earnings, different absorbing coincidence.