Burry’s Final Scion Filing Revealed Large Put Positions on Nvidia and Palantir

Michael Burry, the investor best known for wagering against the housing market in the mid-2000s, disclosed put option positions on two of the market’s most prominent AI-linked stocks shortly before shutting down his firm, Scion Asset Management. According to the newly surfaced disclosure, the bearish contracts were valued at an estimated $1.1 billion against NVIDIA (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR).

Burry rose to prominence after his Scion fund began purchasing credit default swaps on subprime mortgage bonds starting in 2005. Those contracts limited his downside while offering substantial upside if his thesis proved correct — and it did, generating hundreds of millions of dollars for his investors when the mortgage market collapsed. The episode was later chronicled in the book and film “The Big Short.”

Scion returned invested capital to shareholders when it wound down last year, and Burry now manages his personal fortune while sharing portfolio updates through a newsletter. He reportedly continues to hold the Nvidia and Palantir puts in his personal account, and the disclosure suggests he viewed both names as carrying elevated valuations.

Put options give the holder the right to sell shares at a set price, making them a common vehicle for expressing a view that a stock will decline — while capping losses at the premium paid. The structure echoes the asymmetric setup of Burry’s mortgage trades, though options carry expiration dates that add a timing element the housing bet did not have.

The two targets of the trade remain among the market’s most closely watched AI plays. NVIDIA, which describes itself as a data center scale AI infrastructure company operating across the United States, Taiwan, China, Hong Kong and Europe, trades at $223.67, down 0.73% from its previous close of $225.31, with a market capitalization of roughly $5.56 trillion. Palantir, whose software platforms serve intelligence and counterterrorism customers in the United States, the United Kingdom and internationally, sits at $169.53, down 0.64% on the day, valuing the company at approximately $407.4 billion.

Whether the positions pay off remains an open question — put options expire, and even a correct long-term thesis can lose money if the timing is wrong. The disclosure nonetheless adds a notable voice to the ongoing debate about AI-sector valuations.

What to watch

• NVIDIA’s upcoming quarterly earnings report and any commentary on data center demand.
• Palantir’s next earnings release, including growth in commercial and government contracts.
• Future entries in Burry’s newsletter disclosing changes to his option positions.
• Broader AI-sector valuation commentary as more institutional filings are released.

Source: original release