Famous Investor Michael Burry Is Short Nvidia, Palantir, and Tesla. Why I'd Buy 1 of the Stocks, Hold Another, and Sell the Third.
Only Nvidia looks like a buy at the moment.
Overview
Investor Michael Burry, who gained fame from the movie The Big Short for his prescient call on the housing market collapse, has not shied away from his bearish view on AI and several prominent AI stocks. Among the stocks Burry is short on are Nvidia (NASDAQ: NVDA), Palantir Technologies (NASDAQ: PLTR), and Tesla (NASDAQ: TSLA).
Let's look at why I'd buy Nvidia, hold Palantir, and sell Tesla.
Details
Burry doesn't believe that hyperscalers (owners of large data centers) are getting strong returns on their investments, which will eventually lead them to cut back on their AI infrastructure spending. As the biggest winner from this spending, then, it should perhaps be no surprise that he is short Nvidia. The company's graphics processing units (GPUs) have been the main chips powering the AI boom, and if spending slows, so will its revenue growth.
Source
Originally published at www.fool.com.