Michael Burry Takes $1.1B Short Position Against AI Stocks

Palantir,Technologies,Japan,Logo,,Tokyo,,Japan,2024,Sep.15

Famed investor Michael Burry, known for his prediction of the 2008 financial crisis, disclosed a substantial short position against leading artificial intelligence (AI) stocks. The $1.1 billion bet, revealed on November 5, 2025, coincided with a decline in global equity markets, focusing investor attention on the valuations within the tech sector.

Story Highlights

On November 5, 2025, investor Michael Burry, featured in The Big Short, revealed a $1.1 billion short position against AI stocks.
The disclosure was followed by sharp declines in global markets, particularly in tech-heavy indices.
Burry’s action is seen by some as a response to concerns about overvaluation and speculative growth in the AI sector.

Michael Burry’s $1.1 Billion Bet Against AI Stocks

On November 5, 2025, investor Michael Burry, who gained prominence for forecasting the 2008 financial crisis, disclosed a significant short position valued at $1.1 billion targeting prominent AI stocks. The public disclosure was followed by a downturn in global equity markets, leading to a measured sell-off. Indices heavily weighted toward technology experienced declines, as investors considered the potential for a broader market correction within the rapidly growing AI sector.

Burry’s decision to target AI stocks comes amidst existing discussions about elevated valuations and speculative activity within the sector. The AI industry has experienced considerable growth since 2023, with major companies like Nvidia, Microsoft, and Alphabet achieving high valuations. Burry’s short position introduces a layer of market risk assessment to a sector that has drawn comparisons to past technology-driven periods of speculative growth.

Michael Burry just shorted NVIDIA & Palantir. 🚨

For context: This is the guy who predicted the 2008 crash. "The Big Short" film was about him.

His just bought $1M NVIDIA Put: He thinks AI is a bubble ready to burst.

NVIDIA just hit $5 Trillion valuation.

Is this THE sign? pic.twitter.com/BmBExQ07Je

— Rajesh Pattanayak ⚡♐ (@imrajpattanayak) November 4, 2025

Market Reaction and Stakeholder Responses

In the hours following the disclosure, global markets reported losses, with technology and AI-related stocks leading the declines. This reaction reflects investor sensitivity to news regarding potential overvaluation and market adjustment. Financial analysts and media outlets are currently reviewing Burry’s investment strategy and assessing the possibility of a more extensive market downturn. AI companies have issued statements aimed at reassuring investors regarding their business fundamentals to maintain market confidence amid the increased volatility.

Market authorities and regulators have indicated they are monitoring the situation for any signs of systemic risk or market manipulation. Burry has not provided a detailed public commentary, with the information on his position coming through regulatory disclosures. Investors are reportedly re-evaluating their exposure to risk, particularly in portfolios concentrated in the tech sector, as market volatility remains a factor.

Long-Term Outlook for the AI Sector

The long-term impact of Burry’s bet against AI stocks may lead to a comprehensive reassessment of sector valuations and future growth projections. Analysts anticipate increased scrutiny on the financial health and earnings quality of AI companies as investors seek to manage volatility. The technology sector may observe a shift in investment toward stocks considered more defensive or value-oriented. Furthermore, venture capital and private equity firms may adopt a more cautious approach to new AI investments.

The industry holds differing views on the significance of the event. Some professionals maintain that Burry’s move is a reasonable response to what they view as inflated valuations and speculative activity in AI stocks. Conversely, others argue that the long-term potential for AI technology warrants current valuations and that Burry’s position may be premature. The industry remains divided, with proponents citing AI as a transformative technology, while others suggest current valuations may have outpaced fundamental business metrics.

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