Burry Increases Short Positions in Palantir, Nvidia, and Other Tech Names

Investor Michael Burry has reportedly expanded his short positions against several major technology firms, including Palantir Technologies Inc., according to a recent regulatory filing. The move suggests a continued bearish outlook on the sector, specifically targeting companies that have seen significant market appreciation in recent periods.

Palantir, which specializes in software infrastructure for the intelligence community and commercial enterprises, is among the flagged positions. The company builds platforms designed to integrate with disparate data sources, assisting in complex investigations and operations for government clients in the US, UK, and internationally. Burry’s increased bet against the firm comes as shares have recently pulled back from recent highs. Palantir’s stock was last trading at $123.53, a decline of 5.56% from the previous close of $130.80. The company currently holds a market capitalization of approximately $297 billion.

In addition to Palantir, the filing indicates increased short exposure to Nvidia and Micron, as well as Tesla. Burry, known for his early bet against the US housing market prior to the 2008 financial crisis, frequently utilizes derivatives to express views on market valuation and risk. The specific put options involved allow the holder to sell shares at a predetermined price, potentially profiting if the stock prices decline.

The software and semiconductor sectors have been focal points for investors assessing the sustainability of the recent rally driven by artificial intelligence and defense modernization spending. While Palantir has secured significant government contracts for its Gotham and Foundry platforms, the increased short interest reflects concerns regarding current valuation levels relative to earnings.

What to watch

• Palantir’s next quarterly earnings report for details on government contract revenue.
• Updates on the company’s commercial sector growth outside of its traditional intelligence base.
• Future 13F filings for any changes in Burry’s portfolio positioning.

Source: original release