Michael Burry Buys Put Options on Nvidia, Micron, and Palantir as "The Big Short" Investor Predicts a 1987-Style Market Crash
Michael Burry of "The Big Short" is bearish on artificial intelligence (AI) stocks.
Overview
Michael Burry is back in the headlines as he challenges the bull narrative around artificial intelligence (AI) stocks. Recently, the famous investor covered his short positions in Nvidia (NASDAQ: NVDA), Micron Technology (NASDAQ: MU), and Palantir Technologies (NASDAQ: PLTR) and bought put options in each of these stocks.
If you only know of Burry from The Big Short, that makes sense. He is the doctor-turned-investor who noticed something peculiar in the subprime mortgage market years before Wall Street caught on. His claim to fame is buying credit default swaps that paid off when the housing market collapsed between 2008 and 2009.
Details
That single trade still does most of the talking for Burry, but in reality his track record has been messier since 2008. He has been early, loud, and often wrong on timing as markets climbed while he warned about another crash. While Burry's ability to read filing is impressive, one famous call from 18 years ago is not a guarantee on the direction of artificial intelligence (AI) stocks today.
Source
Originally published at www.fool.com.