Burry Increases Bearish Stance on Palantir, Takes Nvidia Position

Fund manager Michael Burry has adjusted his portfolio exposure in the technology and defense sectors, significantly increasing his short position in Palantir Technologies Inc. during a period of share price appreciation. According to a recent regulatory filing, the Scion Asset Management head expanded his bet against the software company while simultaneously establishing a new stake in the semiconductor giant Nvidia via call options.

Palantir specializes in building and deploying software platforms for the intelligence community, assisting in counterterrorism investigations and operations for the United States, the United Kingdom, and other international allies. The company’s platforms, such as Palantir Gotham, are designed to integrate with existing systems to support data analysis. Despite Burry’s increased short interest, the market has recently pushed the stock higher.

Currently, Palantir is trading at $184.58, representing a 3.61% increase over the previous close of $178.15. The company’s market capitalization stands at approximately $426.54 billion. While specific contract details for the quarter were not disclosed in the filing, the stock’s momentum contrasts with the fund manager’s apparent skepticism regarding its valuation.

In addition to the Palantir move, the filing revealed a long position in Nvidia calls, described by Burry as a hedge. The report also noted an expansion of short positions on Oracle. These adjustments reflect a broader reallocation within the fund’s technology holdings, balancing bearish views on certain software infrastructure firms with exposure to the hardware sector.

What to watch

• Future 13F filings detailing exact share counts and expiration dates for the options positions.
• Palantir’s next quarterly earnings report and government contract announcements.
• Upcoming guidance from Nvidia regarding semiconductor demand in the defense sector.

Source: original release