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

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.

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.

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 ).

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).

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.

Palantir’s (PLTR) CEO Alex Karp is attacking Michael Burry and other people shorting his company’s stock after shares of the data analytics company fell 13% over the past week.