Michael Burry’s Asset Management Takes Bearish Stance on AI Stocks

November 13, 2025 – Today, the financial world is buzzing with news of Michael Burry, the renowned investor known for his successful bet against the U.S. housing market in the mid-2000s, taking a bearish stance on artificial intelligence (AI) stocks through his asset management firm.

Background

Michael Burry gained widespread fame after the release of the movie “The Big Short,” which depicted his profitable prediction of the 2008 financial crisis. Since then, he has been closely watched by investors for his contrarian views and investment strategies.

In a surprising move, Burry’s asset management firm has recently taken a significant bearish position against leading AI companies in the market. According to 13F filings, the firm purchased put options on Nvidia and Palantir in the third quarter of 2025, signaling a lack of confidence in the future prospects of these tech giants.

Implications

The decision to bet against AI stocks reflects Burry’s skepticism towards the current market trends. While AI companies have been hailed as the future of technology and innovation, Burry’s move suggests that he sees potential risks and overvaluations in the sector.

Some analysts have raised concerns about the impact of Burry’s bearish stance on the broader market, especially considering his track record of making prescient calls. His warnings about the housing market before the 2008 crash proved to be accurate, leading many to pay close attention to his latest moves.

Market Reaction

Following Burry’s public disclosure of his bearish positions on Nvidia and Palantir, the stock prices of both companies experienced a significant drop. Investors and analysts are now closely monitoring how these AI stocks will perform in the coming months, given Burry’s reputation and influence in the market.

Future Outlook

As Michael Burry continues to make headlines with his contrarian plays, the financial world remains divided on the implications of his latest move against AI stocks. While some view it as a bold and insightful decision, others question the rationale behind betting against companies at the forefront of technological innovation.

Only time will tell whether Burry’s bearish stance on AI stocks will prove to be another profitable prediction or a misstep in his investment strategy. In the meantime, investors are advised to closely monitor developments in the market and stay informed about the potential risks and opportunities associated with investing in AI companies.