Michael Burry's Scion Asset Management has disclosed new put positions against tech heavyweights Nvidia (NVDA) and Palantir (PLTR), signaling a bearish outlook on these companies. This contrarian move by the investor, known for predicting the 2008 housing crisis, comes as Palantir shares declined despite beating Q3 revenue estimates and raising guidance, amid valuation concerns, and as Nvidia's stock fell following President Trump's comments on restricting chip sales to China for national security reasons.
Scion Asset Management, led by renowned contrarian investor Michael Burry, has disclosed new put positions against tech heavyweights Nvidia (NVDA) and Palantir (PLTR). This move signals a bearish outlook on these companies amidst a year where the tech-heavy Nasdaq Composite has gained over 20% and AI stock valuations have soared, aligning with Burry's recent "bubble" commentary. Palantir (PLTR) shares declined by as much as 7% early Tuesday, despite the company beating Q3 revenue estimates and raising its full-year revenue outlook to $4.4 billion, indicating market concerns over its valuation. Nvidia (NVDA) also saw its shares fall over 2% on Tuesday, following President Trump's statement regarding potential US restrictions on selling top-tier chips to Chinese buyers for national security reasons, ahead of its Nov. 19 earnings report. Burry's track record, while notable for predicting the 2008 housing crisis, includes mixed results such as his Tesla (TSLA) put options in 2021, where the stock initially doubled before falling later. Investors should consider the potential influence of such a high-profile contrarian bet, especially given the current "moderately negative" general sentiment and "cautious" tone surrounding these specific tech names.
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moderately negative
Sentiment Score
-0.50
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