‘The Big Short’ Prototype Doubles Down on AI Crash Bets: Continues Shorting Nvidia and Palantir, While Buying Software Stocks
Michael Burry, the investor made famous by "The Big Short" for betting against the subprime mortgage bubble, is now building a comprehensive portfolio to bet against the AI rally.
He maintains and has increased his bearish bets on AI beneficiaries Nvidia and Palantir, while expanding his short positions to include semiconductor ETF SOXX, Nasdaq 100 ETF QQQ, and Oracle. Concurrently, he is buying shares of traditional software companies like Adobe, Autodesk, Salesforce, and Veeva Systems, which have seen their prices decline amid the AI frenzy.
Burry's core thesis is that an "AI infrastructure overbuild" is creating a bubble, drawing parallels to the dot-com era. He argues that major cloud customers are extending GPU depreciation schedules to inflate profits and that current capital expenditures are based on overly optimistic demand forecasts. While his short on Palantir is currently profitable, his Nvidia put options are underwater as the stock nears all-time highs.
The combination of shorting high-flying AI stocks and buying depressed "AI victim" stocks forms a market-neutral hedge. Burry is betting that a repricing of the AI narrative will punish the former group while benefiting the latter.
marsbit05/09 06:48
