Burry’s Short Positions on Palantir, Nvidia, and Tesla Fuel Debate Over AI Valuations

Investor Michael Burry, best known for his positioning ahead of the 2008 housing crisis, has reportedly maintained short positions against a trio of high-profile technology names — Palantir Technologies, Nvidia, and Tesla — while cautioning that artificial intelligence stocks could face a sharp correction reminiscent of the October 1987 market crash.

The comments, reported by The Motley Fool, add a prominent skeptical voice to a market segment that has drawn increasing scrutiny as valuations in AI-linked companies have climbed. Burry, who runs Scion Asset Management, did not detail the size of his positions in the reporting, but the disclosure has intensified discussion among analysts about how much of the sector’s momentum is supported by current earnings versus expectations of future demand.

Palantir in the Crosshairs

Palantir Technologies, the Denver-headquartered software firm known for its data analytics platforms used by government and commercial customers, has been one of the market’s most closely watched AI-adjacent names. The company’s Gotham platform is deployed by intelligence agencies in the United States and the United Kingdom, alongside growing commercial operations through its Foundry suite.

Shares of Palantir (NASDAQ: PLTR) closed at $170.50, essentially flat on the day at −0.07% from the previous close of $170.62. The company carries a market capitalization of approximately $439.7 billion, placing it among the largest companies in the Software — Infrastructure category.

That valuation has made Palantir a frequent reference point in debates over AI stock pricing, as bulls point to its government contracts and platform adoption, while skeptics question whether current multiples leave room for missteps.

The “1987” Comparison

Burry’s reported warning draws an analogy to October 19, 1987, when equity markets fell dramatically in a single session — an episode known as Black Monday. The comparison implies concern not necessarily about the underlying technology, but about how quickly sentiment around crowded trades can reverse.

It remains unclear the extent of Burry’s current exposure or whether the positions remain active, and short sellers have historically faced steep losses attempting to time corrections in technology sectors with strong structural demand drivers.

Notably, the wider news cycle around Palantir continues to include substantive commercial developments — including a recent NVIDIA developer post describing integration of Palantir Foundry with NVIDIA’s Nemotron models for semiconductor supply-chain workflows — underscoring that product momentum and valuation skepticism are running in parallel.

What to watch

• Palantir’s next quarterly earnings report and any updates to revenue guidance or government contract awards.
• Regulatory filings from Scion Asset Management that would confirm or clarify the size and status of reported short positions.
• Institutional ownership changes in Palantir, Nvidia, and Tesla in upcoming 13F filing windows.
• Broader AI-sector commentary from analysts as more technology companies report results.

Source: original release