“`html
Michael Burry, known for predicting the 2007-2008 mortgage crisis, has taken a bearish stance on AI stocks, shorting Nvidia and Palantir Technologies. According to the latest 13F filing from his hedge fund, Scion Asset Management, Burry purchased approximately 5 million put options for Palantir and 1 million for Nvidia, worth around $1.1 billion.
In contrast, Warren Buffett’s Berkshire Hathaway invested over $4 billion into Alphabet during the third quarter. This investment marks a shift for Buffett, who had been trimming tech positions but chose to invest in Alphabet, which trades at a relatively low forward price-to-earnings (P/E) multiple of 28.
Burry’s concerns about Palantir stem from its high valuation, with a price-to-sales ratio of 107, while his skepticism about Nvidia involves potential accounting discrepancies in how its GPUs are valued. Buffett, focusing on long-term investments, views Alphabet as a value play amidst the current market conditions.
“`
