TLDR
- Michael Burry’s Scion Asset Management purchased put options worth $187 million on Nvidia and $912 million on Palantir in Q3 2025.
- These bearish positions account for 80% of Scion’s total portfolio value at quarter end.
- Burry posted “sometimes, we see bubbles” on social media before the regulatory filing was released.
- Nvidia stock declined 2% in premarket trading after news of Burry’s positions became public.
- This is Burry’s second bearish bet on Nvidia in 2025, following similar moves in Q1.
Hedge fund manager Michael Burry has placed major bearish bets against two leading technology companies. Regulatory filings released Monday show his firm Scion Asset Management bought put options on both Nvidia and Palantir Technologies during the third quarter.
The filings reveal put options worth $187 million on Nvidia stock and $912 million on Palantir. These two positions combined represent 80% of Scion’s entire portfolio. Put options allow investors to profit when stock prices fall by giving them the right to sell shares at predetermined prices.
Burry rose to fame for predicting the 2008 housing market crash. His story was featured in the movie The Big Short, where Christian Bale played his character. His investment decisions now attract widespread attention from market watchers.
The actual amount Burry paid for these options is likely far less than the notional values reported. Managers must file these quarterly reports within 45 days of quarter end. The positions reflect holdings as of September 30, so it’s unclear if Scion still maintains them.
Second Bearish Nvidia Position This Year
This marks the second time in 2025 that Burry has bet against Nvidia. His fund previously disclosed put options on the chip maker in the first quarter. That earlier filing included language suggesting the puts might hedge other positions.
The latest Q3 filing contains no such hedging statement. This indicates the positions may be direct bearish bets rather than protective measures for other investments. Scion Asset Management has not responded to requests for comment about the trades.
Nvidia manufactures graphics processing units used to train artificial intelligence models. The company has seen massive stock price growth as AI development has expanded. Demand for Nvidia’s chips has made it one of the most valuable companies in the market.
Bubble Warning on Social Media
Just days before the regulatory filing went public, Burry posted a cryptic message on X. The post included an image from The Big Short with text reading “sometimes, we see bubbles.” The timing came shortly before his bearish positions were disclosed.
On Monday evening, Burry shared additional content on his social media account. He posted graphics from Bloomberg News discussing circular financing concerns involving Nvidia. He offered no further explanation of these posts.
Nvidia shares dropped 2% in premarket trading Tuesday after news broke about Burry’s positions. The decline matched broader market weakness, with S&P 500 futures falling 1.1%. Other chip stocks also traded lower, including AMD down 2.3% and Broadcom off 1.3%.
This isn’t Burry’s first skeptical stance on the AI sector. In 2023, his fund bought put options against the iShares Semiconductor ETF, which holds Nvidia as a major component. That fund has risen substantially since his bet.
Burry’s Q3 filing also showed bullish positions. The fund purchased call options on Halliburton and Pfizer, which profit when stock prices rise. These positions indicate Burry maintains some optimistic bets alongside his bearish technology wagers.
The disclosure has sparked discussion among investors about valuations in the AI and technology sectors. Burry’s track record gives weight to his market positions, though past success doesn’t guarantee future results.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
