Michael Burry Is Bearish on Palantir, Which Is Up 19% Over the Past Year, but His Oracle Short Just Got a Boost From a 53% Stock Drop. Is His AI Bubble Bet Still Worth Following?
Key PointsMichael Burry thinks the market is in denial about what stocks are actually worth.
Michael Burry, the investor famous for his prescient bet against the U.S. real estate market in the lead-up to the 2008 mortgage crisis, remains bearish on several AI stocks, including Nvidia, Palantir, and Oracle. These stocks have seen a 19% increase over the past year, though Burry's short positions in them have not materialized as he hoped.
Burry attributes this to the market being in denial and claims that the previous denial stage lasted six to nine months. He has been publicly negative about Nvidia, questioning the math behind the depreciation rate of its chips and their long-term value. His Palantir and Oracle options are set to expire in September and December 2027, respectively.
Burry asserts that there is still a window in the denial phase, which is why he continues to hold onto his short positions. He believes that following his bearish outlook could help investors maintain an objective perspective and potentially sell before a correction occurs.
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