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Michael Burry Shorts AI Giants
Michael Burry, renowned for predicting the 2008 mortgage crisis, has recently established short positions against Nvidia and Palantir Technologies, as indicated in Scion Asset Management’s latest regulatory filings. Burry’s move comes amidst growing concerns over inflated valuations in the AI sector, where Palantir has seen a 224% increase in share price over the past year and Nvidia maintains a P/S ratio of 29.
According to Burry, Palantir’s price-to-sales ratio of 124 is significantly higher than its industry peers, suggesting it may be overvalued. Historical analogies draw parallels to the dot-com bubble, leading Burry to believe that both stocks could face corrections as market sentiment shifts. Currently, the Fear & Greed Index indicates a state of fear in the market, with the S&P 500 Shiller CAPE ratio at around 40, nearing record highs from the late 1990s.
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