The “Big Short” Investor Returns with a New Market Warning

Michael Burry, head of Scion Asset Management and the legendary investor behind The Big Short, is once again challenging Wall Street consensus — this time betting against the AI boom.

According to newly filed 13F disclosures, Burry purchased put options on Nvidia (NASDAQ: NVDA) and Palantir Technologies (NYSE: PLTR) during Q3 2025. These contracts would profit if the companies’ share prices decline, indicating a bearish outlook on the most hyped sector of the year — artificial intelligence.

“Sometimes, We See Bubbles” — Burry’s Cryptic Post

The filings came shortly after Burry posted a cryptic message on X (formerly Twitter), sharing an image of himself from The Big Short movie with the caption:

“Sometimes, we see bubbles.”

Later that evening, Burry shared additional images, including a Bloomberg News chart discussing circular financing risks involving Nvidia and other tech giants. His posts hinted at growing concerns that capital is being recycled through the AI ecosystem — inflating valuations without equivalent cash flow support.

A Repeat Bet on Nvidia — But This Time Without a Hedge

This isn’t Burry’s first bet against Nvidia. Scion disclosed similar put positions in Q1 2025, but at the time clarified they were likely used for hedging and not a direct short position.

This new filing, however, contains no such disclaimer, suggesting that Burry’s bearish exposure is now unhedged and more deliberate. Analysts interpret this as a sign he sees genuine downside potential, especially as Nvidia’s market capitalization recently surpassed $4 trillion, making it the world’s most valuable tech company after Apple.

Diversifying with Halliburton and Pfizer Calls

Interestingly, Scion also disclosed call option positions on Halliburton (HAL) and Pfizer (PFE) — signaling that Burry isn’t entirely risk-off. These bullish positions on energy and healthcare sectors could serve as a hedge against broader market volatility, especially if tech valuations correct.

Such diversification aligns with Burry’s classic investment philosophy: using contrarian plays in overvalued sectors while holding long exposure to real-economy industries with solid cash flow.

Between Hedge and Conviction Trade

While some analysts believe these trades could still be part of a broader hedging strategy, others suggest that Burry is positioning for a potential AI correction similar to the dot-com unwind.

Nvidia and Palantir have soared over the past year, benefiting from the generative AI boom — but with stretched valuations and cyclicality in tech spending, Burry might once again be preparing for the moment when optimism peaks.

Bottom Line:
Michael Burry — the man who predicted the 2008 housing crash — is once again sending a warning to markets. His latest puts on Nvidia and Palantir reflect growing skepticism toward the AI-driven rally that has defined 2025. Whether this is a tactical hedge or a conviction short, Burry’s timing has rarely gone unnoticed. If history is any guide, Wall Street might want to pay attention.