Michael Burry Takes Another Huge Short Position on Nvidia and Palantir After Bubble Warning
TLDR
- Michael Burry’s Scion Asset Management purchased put options on Nvidia worth $187 million and Palantir worth $912 million in Q3 2025.
- The two put positions together represent 80% of Scion’s portfolio at the end of September.
- Burry posted a cryptic message on X saying “sometimes, we see bubbles” and shared images about circular financing concerns related to Nvidia.
- This marks the second time Burry has bet against Nvidia, having previously disclosed puts in Q1 2025.
- Nvidia shares dropped 2% in premarket trading following the disclosure of Burry’s bearish bets.
Michael Burry’s Scion Asset Management filed regulatory documents on Monday showing the hedge fund purchased put options on Nvidia and Palantir Technologies during the third quarter of 2025. The moves represent a major bearish position against two of the market’s most watched technology companies.
The filings revealed Burry’s fund bought put options with a notional value of $187 million on Nvidia stock. Put options give the holder the right to sell shares at a set price within a specific timeframe. The fund also acquired put options worth $912 million on Palantir.
Combined, these two positions make up 80% of Scion’s portfolio at the end of September. The actual cost of the options is likely much lower than the notional values reported. Scion has not responded to requests for comment about the positions.
This marks the second time in 2025 that Burry has taken a bearish stance on Nvidia. His fund previously disclosed put options on the chip maker in Q1 2025. That earlier filing included a statement indicating the puts might hedge other long positions not required to be reported.
The Q3 filing released Monday did not contain similar hedging language. This suggests the latest positions may be outright bearish bets rather than protective measures for other holdings.
Burry gained fame for correctly predicting the 2008 housing market collapse. Christian Bale portrayed him in the film The Big Short. His market moves now draw close attention from investors and analysts.
Social Media Warning Signals
Days before the regulatory filing became public, Burry posted a message on X that included an image from The Big Short movie. The post stated “sometimes, we see bubbles.” The timing of this message preceded the disclosure of his bearish positions.
On Monday evening, Burry shared more images on his X account. These included a graphic from Bloomberg News discussing circular financing concerns related to Nvidia and other companies. The posts offered no additional explanation of his views.
Nvidia shares fell 2% in premarket trading on Tuesday following news of Burry’s positions. The decline matched broader market weakness, with S&P 500 futures dropping 1.1%. Other semiconductor stocks also traded lower, with AMD down 2.3% and Broadcom falling 1.3% in premarket activity.
Previous Skepticism of AI Sector
Burry has previously expressed doubt about the artificial intelligence boom through his investment choices. In 2023, his fund purchased put options against the iShares Semiconductor ETF. That exchange-traded fund counts Nvidia as one of its major holdings.
The semiconductor ETF has risen substantially since Burry’s 2023 bet against it. Nvidia has been a primary beneficiary of increased demand for AI chips used to train large language models.
Regulatory filings show investment positions as of the end of each quarter. Managers have 45 days to file these reports. This means the disclosed positions reflect holdings from September 30, 2025.
It remains unclear whether Scion still holds these put options or how they have performed since the quarter ended. The fund also took bullish positions during Q3, purchasing call options on Halliburton and Pfizer. Call options profit when stock prices rise.
Nvidia manufactures chips that have become the preferred choice for companies building and training AI models. The company’s stock price has experienced substantial growth over the past two years as AI development has accelerated across the technology industry.