Michael Burry buys put options on Nvidia, Micron, and Palantir

By Splitfeed EditorialLast updated Oct 2, 2026, 11:10 UTC

In late September and early October 2026, investor Michael Burry disclosed put options on three technology stocks: Nvidia, Micron, and Palantir. Put options are contracts that pay off if the underlying stock falls below a set price, meaning Burry is positioned to profit if any or all three companies lose market value. Burry, whose firm Scion Asset Management became famous for betting against the US housing market ahead of the 2008 financial crisis, paired these positions with public statements comparing the current market to a 1987-style broad crash and describing Nvidia's AI-driven valuation as reminiscent of a 1960s speculative bubble. His comment "We have all been here before" framed the move as pattern recognition rather than a novel call.

The positions matter because Burry's name carries unusual weight in debates about speculative excess. His 2008 trade, later dramatized in the film and book "The Big Short," gave him a reputation as a contrarian willing to act well before a consensus forms. By targeting Nvidia specifically and connecting it to the AI investment cycle, Burry is not simply making a stock call but offering a structural critique: that AI enthusiasm has inflated valuations to a degree historically associated with corrections. What is genuinely in dispute is whether the AI investment cycle represents durable economic transformation or a speculative episode comparable to earlier technology manias. Nvidia, Micron, and Palantir have each benefited substantially from AI-related demand, and none has commented publicly on Burry's positions.

None of the three camps have published reactions to this specific story. The pro-AI camp would typically argue that Burry's historical analogies are misapplied, that AI productivity gains are real and measurable, and that short-sellers have repeatedly underestimated the durability of technology-driven growth cycles. The anti-AI camp would typically welcome Burry's intervention as expert validation of concerns about inflated valuations and the risk that AI investment is running ahead of demonstrated returns. The middle ground camp would typically acknowledge the legitimate bubble risk while noting that timing such corrections is notoriously difficult, and that Burry's past record, though notable, includes calls that took years to resolve or did not materialise as predicted.

The argument will sharpen around Nvidia's next earnings disclosures and any shift in broader market conditions. If Nvidia's revenue or guidance disappoints relative to AI-inflated expectations, Burry's framing gains credibility quickly. If demand holds, the positions become costly and the bubble comparison fades, at least temporarily.