Michael Burry exits markets after a $9.2M short bet targeting Palantir and the AI sector, citing inflated valuations.

Investor Michael Burry sought to clarify certain misconceptions about his latest options bet against Palantir Technologies Inc. (NASDAQ: PLTR), after details of the position were widely misinterpreted in media reports.

Palantir stock currently trades at a 73% discount to the per-share value of Burry's bearish bet. ・Citron said in a mid-August short report that Palantir is worth only $40 apiece. ・Burry has called out a bubble in the AI space — an industry that drove much of the upside seen in the bull run since late 2022.

Michael Burry's short of the U.S housing market is depicted in the 2015 film, The Big Short, along with the 2010 novel written by Michael Lewis, The Big Short: Inside the Doomsday Machine. This is how Burry came to be known as Wall Street's "Big Short" investor.

As he prepares to close his legendary hedge fund, new filings show "Big Short" investor Michael Burry has bet on six stocks while placing bearish put options on Nvidia (NVDA) and Palantir (PLTR).

The two companies he’s shorting are the ones making all the money, which is super weird,” Alex Karp told CNBC’s “Squawk Box” on Tuesday.

Dr. Michael Burry, the brilliant investor and trader who bet against the housing market before the Great Financial Crisis market meltdown, recently disclosed his new positions, which include massive bets against notable AI high-flyers Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR).

Nearly two decades after he became a Wall Street legend for predicting the 2008 housing crash, investor Michael Burry once again came out of the shadows with his bold bets against AI darlings Nvidia ( NVDA) and Palantir ( PLTR ).

Shares of Palantir (NASDAQ:PLTR) have been scorching hot in recent years, and it’s continued to defy the laws of gravity. But after a spectacular quarterly earnings report, perhaps the laws of gravity are starting to come into effect.