Michael Burry Bets Against AI Heavyweights as He Pivots to Chinese Tech

Palantir shares are trading near $127, but Michael Burry estimates the company's intrinsic value is under $50 per share. The hedge fund manager has maintained bearish positions against the data analytics firm since autumn 2025, holding June 2027 Strike 50 puts and December 2026 Strike 100 puts. Palantir shares have fallen roughly 28% year-to-date in 2026 and remained on course for a 13% weekly decline despite a public endorsement from President Trump, who described the company as having ‘great warfighting capabilities.‧

Burry also amplified his negative outlook on Nvidia through the purchase of January 2027 Strike 115 put options at a premium of 3.30. He maintains previous January 2027 Strike 100 put contracts. Burry stated he is short at about 3% of notional value, opting for puts over a direct short position to cap his risk profile while implied volatility remains elevated. This follows his February questioning of whether major technology companies could maintain substantial data center capital expenditure without impacting profitability.

Related Brief1d ago

short selling

Michael Burry’s Palantir Short Points to a $77 Gap Between Price and His Estimate of Fundamental Value

Palantir stock traded at approximately $127 per share on Friday, more than double Michael Burry’s estimate of its fundamental value. Burry holds long-dated put options on the company with strike prices of $50 and $100, including June 2027 $50 puts and December 2026 $100 puts, and has no plans to exit the position. He believes the stock’s intrinsic worth is well under $50 per share, creating a gap of over $77 between current price and his valuation. The difference underscores a stark divergence between market sentiment and Burry’s assessment. He has maintained this bearish stance since the fall of 2025, rolling the position multiple times. Despite a recent post by President Trump praising Palantir’s “great warfighting capabilities” on Truth Social, the stock remains down about 28% in 2026. Palantir has secured new government contracts and expanded its work with the Pentagon during Trump’s second term, yet Burry sees no justification for its premium valuation.

These bearish wagers are juxtaposed with new equity positions in Chinese e-commerce giants JD.com and Alibaba. Burry characterized JD as a ‘significant add‧ representing slightly over 6% of his portfolio allocation, while Alibaba entered as a fresh holding at a comparable weighting. Burry noted that recent market weakness provided an ‘attractive entry point.‧

He also expanded his GameStop stake and acquired shares of payment processing firm Fiserv based on confidence in the company's new leadership. Palantir CEO Alex Karp previously described Burry's positions as ‘super weird‧ and ‘bats… crazy‧ following regulatory disclosures of his bearish stakes.

Related Brief6h ago

investor sentiment

Burry’s NVIDIA Bets Signal Skepticism as AI Spending Soars

Michael Burry is betting that NVIDIA’s rally has gone too far. The investor made famous by “The Big Short” increased his put options on NVIDIA with a strike price of $115 expiring in January 2027 — a clear signal of skepticism toward the stock’s current valuation. This move comes as capital floods into artificial intelligence startups, with AI drawing the highest disclosed financing amount of any sector this week at approximately RMB 4.708 billion. Shengshu Technology, an AI video app maker, closed a nearly RMB 2 billion Series B round — the largest disclosed deal domestically — backed by Alibaba, TAL Education, and Baidu in a $293 million round. Alibaba itself climbed 2.1% in Hong Kong trading after its new AI video-generation model topped a global ranking. Yet Burry’s positioning suggests he sees a disconnect: while investors pour money into AI applications and infrastructure, the hardware enabler at the center of the boom may be overpriced. His simultaneous purchase of Alibaba and JD.com shares — citing JD.com’s recent weakness as an ideal entry point — underscores a selective approach, favoring exposed but discounted assets over the dominant player in AI chips. The consequence is not a prediction of collapse, but a warning that the market’s faith in perpetual AI-driven growth may not be priced for risk. Burry isn’t shorting the idea of AI. He’s shorting the assumption that NVIDIA must win no matter what.

Related Brief1d ago

short selling

Michael Burry’s Palantir Short Points to a $77 Gap Between Price and His Estimate of Fundamental Value

Related Brief6h ago

investor sentiment

Burry’s NVIDIA Bets Signal Skepticism as AI Spending Soars

Michael Burry Bets Against AI Heavyweights as He Pivots to Chinese Tech

Read More Analysis

Watertown home prices are rising, not falling — up 17.1% in a year as affordability strains deepen

Morgan Stanley’s 0.14% Bitcoin ETF Fee Undercuts Rivals — and Its Own Margin Model

Michael Burry Bets Against AI Heavyweights as He Pivots to Chinese Tech

Read More Analysis

Watertown home prices are rising, not falling — up 17.1% in a year as affordability strains deepen

Morgan Stanley’s 0.14% Bitcoin ETF Fee Undercuts Rivals — and Its Own Margin Model

The Ledger Morning

Read More Analysis

Watertown home prices are rising, not falling — up 17.1% in a year as affordability strains deepen

Morgan Stanley’s 0.14% Bitcoin ETF Fee Undercuts Rivals — and Its Own Margin Model

The Ledger Morning

Read More Analysis

Watertown home prices are rising, not falling — up 17.1% in a year as affordability strains deepen

Morgan Stanley’s 0.14% Bitcoin ETF Fee Undercuts Rivals — and Its Own Margin Model