Michael Burry’s Big Short on AI Stocks: Is He Predicting an AI Bubble in 2025?

Introduction:

Michael Burry, the renowned investor who foresaw and benefited from the 2008 U.S. housing market crash, is well-known to viewers of The Big Short. Burry appears to be taking another risk in 2025. According to reports, he is betting against some of the largest artificial intelligence (AI) stocks this time, and the news is going viral on Stockxpo and other financial forums.

Is this just another contrarian hedge, or could Burry be predicting an AI bubble akin to the 2008 housing bubble? Let's examine the current situation and its potential implications for investors.

 Summary

1. The Multi-Year Boom in AI Stocks
2. NVIDIA: The Innovation Powerhouse of AI
3. Technology: Combining AI and Data
4. Michael Burry’s “Big Short” 2.0: Betting Against the AI Hype
5. Big Short" by Michael Burry 2.0: Opting Out of the AI Hype
6. The Reasons Burry's Short-AI Bet Is Audacious and Dangerous
7.The Implications for Retail Investors and Stockxpo Readers

1.  The Multi-Year Boom in AI Stocks

AI-driven businesses have taken over the stock market in recent years, giving investors enormous returns. AI has been the hottest topic on Wall Street, from transforming data analytics to enabling self-governing systems.

2. NVIDIA: The Innovation Powerhouse of AI

The AI revolution is best exemplified by NVIDIA (NASDAQ: NVDA). As the face of AI investment, NVIDIA is well-known for its powerful GPUs used in AI applications.

NVDA was trading close to $13 a share five years ago.

By November 2025, it is trading at about $200, representing a staggering 1,300% increase.

NVIDIA's quick ascent has made it one of the most valuable companies in the world, but it also raises concerns about overvaluation.

3. Technology: Combining AI and Data

Palantir Technologies (NASDAQ: PLTR), a company that combines analytics, data security, and artificial intelligence, is another significant player. Its long-term trajectory has been explosive, despite brief declines after recent earnings.

The stock of PLTR has increased by over 1,700% in the last five years.

Exuberant buying has greeted every dip, penalizing short sellers in the process.

The unstoppable rise of AI stocks and possibly the overheated sentiment that Michael Burry is betting against are symbolized by NVIDIA and Palantir together.

4. Michael Burry’s “Big Short” 2.0: Betting Against the AI Hype

Burry's Scion Asset Management has taken sizable put-option positions against Palantir and NVIDIA, per a Form 13-F filing.

What's noteworthy is this:

Investors can profit from put options in the event that the price of a stock drops.

According to reports, Scion had puts on five million Palantir shares and one million NVIDIA shares.

The total notional value is $912.1 million (PLTR) and $186.58 million (NVDA).

Burry may be getting ready for a correction or crash in large-cap stocks with an AI focus, based on these trades.

Investors are talking about these positions on Stockxpo and on sites like Reddit and X (Twitter). It's “the next Big Short," according to some users, while others think Burry might just be hedging his exposure rather than shorting.ging his exposure, not outright shorting the AI market.

5. Big Short" by Michael Burry 2.0: Opting Out of the AI Hype

Burry's Scion Asset Management has taken sizable put-option positions against Palantir and NVIDIA, per a Form 13-F filing.

What's noteworthy is this:

Investors can profit from put options in the event that the price of a stock drops.

According to reports, Scion had puts on five million Palantir shares and one million NVIDIA shares.

The total notional value is $912.1 million (PLTR) and $186.58 million (NVDA).

Burry may be getting ready for a correction or crash in large-cap stocks with an AI focus, based on these trades.

Investors are talking about these positions on Stockxpo and on sites like Reddit and X (Twitter).  It's “the next Big Short," according to some users, while others think Burry might just be hedging his exposure rather than shorting.

6. The Reasons Burry's Short-AI Bet Is Audacious and Dangerous

Even Michael Burry, who is well-known for having a contrarian outlook, is at serious risk in this situation. His put options might expire worthless, resulting in losses of Millions of dollars, if AI stocks continue to rise.

This should serve as a warning to ordinary investors: don't blindly follow the strategies of successful investors.

Unlike most portfolios, Burry's hedge fund is able to absorb losses. There is an infinite risk of loss when shorting momentum-driven stocks like Palantir or NVIDIA.

Therefore, it's a good idea to evaluate your risk Tolerance, time horizon, and financial capacity before taking any similar positions.

7. The Implications for Retail Investors and Stockxpo Readers

This is what astute Stockxpo investors need to remember:

Stay away from mindless imitation. Burry's 2008 success does not guarantee that his current venture will be successful.

AI continues to propel growth. Industry adoption of AI is still robust despite high valuations.

Spread out your investments. Even with a topic as fascinating as artificial intelligence, don't focus too much on it.

Do not stray from the basics. Pay attention to businesses that have sustainable business plans, healthy balance sheets, and actual profits.

Investors can profit from AI advancements without becoming enmeshed in speculative hype by maintaining discipline.

Frequently Asked Questions

Q.1. Who is Michael Burry?
A.1. Michael Burry is a hedge fund manager best known for predicting the 2008 U.S. housing market crash, a story dramatized in The Big Short.

Q.2. What stocks is he betting against?
A.2. Burry’s Scion Asset Management has put-option positions against NVIDIA (NVDA) and Palantir Technologies (PLTR) two of the biggest AI names in the market.

Q.3. What do put options mean?
A.3. Put options give investors the right to sell shares at a specific price, effectively betting that the stock’s price will go down.

Q.4. Does this mean the AI bubble is about to burst?
A.4. Not necessarily. Burry’s positions might be hedges or speculative plays. Predicting the timing of a correction is extremely difficult.

Q.5. Should investors follow Burry’s strategy?
A.5. It’s risky. Shorting momentum stocks requires deep pockets and high tolerance for volatility. Most investors are better off holding diversified, long-term AI exposure instead.

Conclusion

Michael Burry’s “Big Short” against AI giants like NVIDIA and Palantir is one of 2025’s most talked-about trades. It’s bold, contrarian, and possibly brilliant but also extremely risky.

As excitement and skepticism collide, Stockxpo readers should approach the AI sector with caution and strategy. AI isn’t going away, but valuations may not stay sky-high forever.

Whether Burry’s prediction becomes another legendary win or a rare misstep, one thing is certain the world will be watching closely. Until then, stay informed, diversify wisely, and remember: not every “Big Short” is worth taking.

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