- Michael Burry’s recent stances have intensified concerns about valuations across AI companies
- Nvidia and Palantir face scrutiny as investors react to Burry’s bearish stance
- Pat Gelsinger’s comments add weight to the growing belief that AI evaluations appear overheated
The growing debate over the stability of AI valuations has intensified in recent weeks as AI companies increasingly dominate the market.
The sharpest warning yet comes from a figure whose name remains inseparable from the events of 2008, when the sub-prime mortgage collapse sparked a global financial crisis.
Michael Burry, whose actions during the subprime mortgage crisis became central to the blockbuster The big shortHe has taken new positions that show his deep skepticism towards the current artificial intelligence boom.
Perry’s bets bring renewed focus on feverish expectations
Recent financial disclosures show that Puri’s company, Sion Asset Management, has opened large options positions associated with it Nvidia and Palantir, with a face value exceeding $1 billion.
These positions suggest he sees downside risks in stocks that are widely viewed as pillars of the AI boom.
Although Scion has also opened short positions in companies outside the AI space, it is the size of these AI-related positions that has attracted the most attention.
This is because it reflects his willingness to challenge the market consensus during previous speculative cycles.
These filings only cover activity until late September 2025, so it remains unclear whether it has actually reinstated it, though the timing alone has amplified the public debate.
The renewed focus on Perry comes at a time of growing concerns about financial circularity.
Nvidia has been at the center of several arrangements seen as unusually structured, including deals involving xAI, and AMD and OpenAI have also formed partnerships that combine hardware supply with equity exposure.
Such patterns reinforce the view that valuations may be driven more by momentum than clear long-term revenue expectations.
They also emerge at a time when companies are committing significant budgets to expanding data centers, advanced CPU integration, and the hardware needed to support the required AI tools.
Pat Gelsinger, former Intel CEO, also said the AI sector is in bubble territory, though he believes a correction could happen gradually rather than suddenly.
His comments show a belief that the sector’s revenue models are lagging far behind the pace of investment, raising questions about whether current spending levels will be justified by returns.
Meanwhile, market reactions showed renewed volatility, with both Nvidia and Palantir seeing sharp declines as investors reassessed exposure.
Despite Perry’s reputation, not everyone agrees with his assessment.
Perhaps unsurprisingly, Alex Karp, CEO of Palantir, has publicly dismissed bubble warnings in straightforward terms, insisting that AI-led economic expansion will eventually justify current valuations.
Whether Puri is once again citing pre-market structural risks or simply responding to short-term sentiment will become clearer as the sector moves from rapid expansion to measurable results.
For now, the tension between optimism and caution continues, leaving investors to interpret signals from a figure whose past forecasts have reshaped financial history.
via Tom’s devices
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