Michael Burry Discloses Bearish Positions on AI Names Including Palantir, Warns of 1987-Style Market Correction

Investor Michael Burry, best known for his bet against the housing market chronicled in “The Big Short,” has reportedly disclosed bearish wagers against several high-profile artificial intelligence stocks, including Nvidia and Palantir Technologies, while publicly warning of a potential market decline reminiscent of the October 1987 crash.

The disclosures, reported by The Motley Fool, have drawn attention across the defence technology and aerospace investment community, particularly given Palantir’s prominence among publicly traded software companies serving government and intelligence customers.

Palantir in Focus

Palantir Technologies Inc. (NASDAQ: PLTR) builds and deploys software platforms used by the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. Its flagship Palantir Gotham platform integrates with other data systems used by government clients.

As of the latest trading session, PLTR shares stood at $170.50, down a modest 0.07% from the prior close of $170.62. The company carries a market capitalization of approximately $439.7 billion, placing it among the largest software-infrastructure companies in the technology sector.

The 1987 Comparison

Burry’s warning invokes Black Monday, October 19, 1987, when major equity indices fell sharply in a single session. The investor has previously taken public stances on perceived excesses in technology valuations, and his latest comments suggest he sees parallels between current enthusiasm around artificial intelligence stocks and historical episodes of concentrated market speculation.

Positions disclosed against individual companies — sometimes referred to as put options, which gain value when a stock declines — represent one investor’s view and do not necessarily reflect broader institutional sentiment. Disclosure requirements mean such bets are typically visible to the public only with a lag, and positions can be changed or closed before they appear in filings.

Context for Defence Investors

Palantir occupies a distinctive position at the intersection of commercial software and government services, with revenue tied to public-sector contracts as well as commercial deployments. That dual exposure means its valuation reflects both defence-sector demand dynamics and the broader AI investment cycle that has driven many technology valuations higher in recent years.

The Motley Fool’s coverage framed the question of whether retail investors should follow Burry’s lead — a decision this publication does not address. Readers evaluating any stock should rely on company filings, earnings reports, and guidance rather than the disclosed positions of any individual investor.

What to watch

• Palantir’s next quarterly earnings report and any updates to full-year revenue guidance
• Regulatory filings that confirm, size, or show changes to the reported bearish positions
• New contract announcements or renewals from Palantir’s government and commercial clients
• Broader market volatility measures and any follow-up public commentary from Burry

Source: original release