Burry Scales Back Bearish Positions in AI-Linked Names Including Palantir

Investor Michael Burry, best known for his role profiled in “The Big Short,” has reduced his put positions against Nvidia and Palantir Technologies, according to a report by TipRanks. Burry described the move as “pulling in risk,” suggesting a partial retreat from his bearish stance on some of the market’s most prominent artificial intelligence-linked stocks.

Put options give holders the right to sell a stock at a set price and are commonly used to wager on share declines. Trimming such positions reduces exposure to those bets rather than eliminating them entirely, though the report did not specify the size of the remaining positions.

Burry’s activity has drawn attention because the hedge fund manager previously gained prominence for calling the 2008 housing collapse. His recent filings and commentary have focused on technology valuations, and any adjustment to those positions tends to generate headlines given his track record.

Palantir in focus

Palantir Technologies, one of the names in which Burry trimmed his bearish exposure, is a data-analytics software company with deep roots in the government and defence space. Its flagship Palantir Gotham platform integrates with other systems and has been used by the intelligence community to support investigations and operations in the United States and the United Kingdom, with international customers as well.

The stock closed at $170.62 in the previous session and trades at $170.50 today, a decline of 0.07%. The company carries a market capitalization of roughly $439.7 billion, placing it among the largest software-infrastructure names in the technology sector. Its dual positioning — commercial AI platforms alongside long-standing government software contracts — has made it a frequent subject of valuation debates, which helps explain why it has featured prominently in investors’ hedging strategies.

The report did not indicate whether Burry’s risk reduction extended beyond Nvidia and Palantir, or whether the moves reflected a changed view on valuations, portfolio management, or other considerations. Options positions can be adjusted for many reasons, including tax timing, margin management, and changes in overall portfolio volatility, so the reduction does not by itself signal a definitive forecast.

For readers tracking defence-adjacent technology names, the episode underscores how closely watched portfolio disclosures have become. Palantir’s investor base includes both institutions focused on its government software business and those focused on its commercial AI growth, and disclosures from high-profile investors can move sentiment even when the underlying fundamentals are unchanged.

As always, portfolio moves by any single investor are just one data point among many. Company earnings, contract announcements, and government budget developments remain the primary drivers for defence-sector software names like Palantir.

What to watch

• Palantir’s upcoming quarterly earnings report and any updates to guidance
• Future 13F filings that may reveal further adjustments to institutional positions
• New U.S. and allied government software contract awards
• Broader AI-sector sentiment shifts affecting technology valuations

Source: original release