Michael J. Burry, the investor known for his successful bet against the U.S. housing market before the 2008 financial crisis, has placed a significant bearish wager on two of the most prominent AI-linked stocks. Scion Asset Management, the fund Burry runs, disclosed put options covering 1,000,000 shares of Nvidia and 5,000,000 shares of Palantir in a regulatory filing for the quarter ended September 30, 2025. The positions represent a concentrated bet that both stocks will decline, and the disclosure triggered immediate selling pressure in AI names as traders reassessed how much optimism is already priced into the sector.
Scion’s put options signal a direct challenge to AI valuations
The scale of the positions stands out. Scion’s 13F information table lists 1,000,000 shares worth of Nvidia puts and 5,000,000 shares worth of Palantir puts, both classified simply as “Put” with no strike price or expiration date disclosed. That gap matters. A 13F filing reports the number of shares underlying option contracts and their market value at quarter-end, but it does not reveal the terms that define the actual bet, including the price at which the options become profitable or when they expire.
Because those details are missing, outside observers have relied on assumptions. The roughly 30 percent downside sometimes referenced in market commentary is an inference drawn from typical out-of-the-money put structures, not a figure Burry or Scion has stated publicly. Without knowing the strike prices, it is impossible to say whether Burry is bracing for a modest pullback from stretched levels or positioning for a deeper collapse in AI-related equities.
What the filing does confirm is that Burry personally signed the document. The 13F cover page names Michael J. Burry as the reporting manager for Scion Asset Management, LLC, with the filing submitted on November 3, 2025. That timing is consistent with the SEC’s 45-day deadline after the end of a calendar quarter, and it means the positions were held as of September 30 but could have been opened, adjusted, or closed at any point during the third quarter or afterward. Investors parsing the disclosure therefore know what Scion owned on a single date, not how Burry may have traded around the positions in the weeks since.
What Scion’s filing history and market reaction reveal
Scion has maintained a regular 13F filing cadence. An earlier report for the period ended March 31, 2025, was submitted on May 15, 2025, according to SEC records. Comparing the March and September filings would show whether the Nvidia and Palantir puts are entirely new positions or expansions of smaller bearish bets, but the full contents of the March information table are not detailed in the available reporting. Even without that comparison, the sheer size of the current trades relative to Scion’s overall portfolio underscores how focused Burry’s skepticism has become.
The concentration of bearish exposure in two names, rather than a broad basket of technology stocks, suggests Burry sees specific vulnerability in AI-related valuations rather than a generalized call for a sector-wide correction. Nvidia has been the primary hardware beneficiary of the AI boom, while Palantir has pitched its software platforms as critical infrastructure for governments and corporations adopting machine learning. Both narratives depend on sustained, rapid growth in AI spending and on the ability of each company to maintain pricing power and competitive advantages.
The market responded quickly once the filing became public. AI stocks wavered as traders digested the idea that one of the most famous crisis-era bears was targeting flagship names of the current boom. Short-term volatility followed in both Nvidia and Palantir as options activity picked up and some momentum-focused investors locked in profits. The reaction highlighted how sensitive AI-linked shares have become to any signal that enthusiasm might be peaking.
For Palantir in particular, Burry’s bet landed in the middle of a heated debate over valuation. Supporters argue that the company’s government contracts and expanding commercial footprint justify premium pricing, while critics contend that revenue growth and profitability do not yet match the stock’s lofty multiples. A high-profile short thesis from a figure like Burry adds weight to the skeptical side of that argument, even though his specific rationale remains undisclosed.
Still, 13F data has limits. The filings do not reveal whether Scion has offsetting long positions, hedges, or complex option spreads that would change the net exposure implied by the headline put numbers. Nor do they capture intraday trading or positions in instruments that are not reportable on Form 13F. For investors tempted to mirror Burry’s trades, those blind spots are crucial: the public can see only a snapshot of one part of his book, delayed by several weeks.
In that sense, the Nvidia and Palantir puts are best understood as a clear signal of concern about AI valuations rather than a precise forecast of where the stocks must trade. Burry has once again positioned himself against a dominant market narrative, this time questioning whether the promise of artificial intelligence can support the prices investors are currently willing to pay. Whether that skepticism proves prescient will depend not just on quarterly earnings, but on how quickly real-world AI adoption catches up with the expectations embedded in today’s market leaders.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
