The Big Short’s Michael Burry Predicts a Possible 1987-Style Drop and is Betting Against AI Giants Nvidia and Palantir. Should You Follow?

Michael Burry, the man behind the 2008 mortgage crisis prediction and subsequent shorting of the mortgage bond market, has recently expressed skepticism about the development of artificial intelligence (AI). In a recent statement, Burry dismissed concerns about the slowdown of AI progress, asserting that there is "nothing AI to slow down." This came as worries about the pace of AI development have been gaining traction in the industry.

Burry is known for his bullish stance on AI, often warning of a bubble in the sector. He has a history of betting against stocks in the tech industry, putting his money where his mouth is with puts on Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR). Recently, Burry has sold off his stake in Nvidia and a portion of his Palantir position, freeing up cash. However, he continues to hold some short positions in the tech sector.

As Wall Street remains generally bullish on both Nvidia and Palantir, investors are left to question whether Burry's negative views should be taken seriously.