Michael Burry, the famed investor who predicted the 2008 housing crisis, is placing a massive bet against the artificial intelligence (AI) boom. According to Scion Asset Management's latest 13F filing released in early November 2025, the firm holds put options on 5 million shares of Palantir Technologies and 1 million shares of Nvidia. These positions account for roughly 80% of Scion’s tightly focused $44 million portfolio.
A Contrarian Wager on AI Valuations
The filing demonstrates Burry’s classic contrarian approach—skeptical of consensus narratives and willing to concentrate risk when valuations appear stretched. Palantir and Nvidia have been among the biggest beneficiaries of the AI frenzy, with their stock prices surging on optimism over artificial intelligence adoption. Burry's puts are a direct bet that this optimism has overshot fundamentals. In a portfolio this compact, the concentration is not a whisper but a loud statement. The position implies that Burry expects a meaningful correction in these names, possibly due to earnings disappointments or a shift in market sentiment.
Bullish Bets Beyond AI: Healthcare, Energy, and Consumer
Burry is not purely bearish. Scion added call options on Pfizer and Halliburton, signaling a bullish outlook on big pharma cash flows and oilfield services cyclical strength. On the equity side, the firm doubled its stake in Lululemon Athletica, opened new positions in student lender SLM Corporation, and invested in managed-care provider Molina Healthcare. These moves suggest a rotation toward defensive cash flows and U.S.-centric sectors with clearer catalysts. The portfolio now balances a high-conviction bearish bet on AI with selective bullish exposure to healthcare, energy, and consumer credit.
Geographic and Sector Rotation
Geographically, Scion reduced its exposure to Chinese e-commerce stocks and exited U.S. health insurers. The filing indicates a deliberate shift away from regulatory and geopolitical drag toward cleaner domestic opportunities. Burry’s new bets are concentrated in American companies: from New York pharma halls to Houston’s oil fields and West Coast retail. This rotation mirrors a broader investor impulse to sift for value beyond the AI crowd.
Risk and Track Record
While Burry’s 2008 short made him a legend, his subsequent macro wagers—such as shorting Tesla and broad market indexes—have had mixed results. Being early can look the same as being wrong for a while. If AI momentum continues and earnings stay strong, these puts could expire worthless. However, if market enthusiasm cools or profits disappoint, the payoff could be outsized. The calls and cash-flow positions provide some balance, but this remains a high-beta posture by design. For investors tracking positioning rather than punditry, Scion’s filing offers a crisp map of where Burry believes gravity will reassert itself.