Michael Burry Just Said 7 Words Dismissing AI After Slowdown Fears: "There Is Nothing AI to Slow Down." Should Investors Trust His Nvidia and Palantir Shorts?
Burry made a fortune by shorting the mortgage bond market ahead of the financial crisis.
Overview
Michael Burry earned his fame by correctly anticipating the 2008 mortgage crisis and shorting the mortgage bond market to make a windfall, as chronicled in the best-selling Michael Lewis book The Big Short and the movie of the same name. He recently closed down his money management fund, but he still provides market commentary for his fans.
This week, he took a shot at artificial intelligence (AI) companies as concerns arise about the idea that the pace of AI development needs to be slowed, saying, "There is nothing AI to slow down."
Details
Burry has asserted that the AI sector is in a bubble many times, and he put his money where his mouth is with literal puts on Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR). He recently sold his Nvidia position and part of his Palantir position to free up cash, but he retains several short positions in the tech sector. Meanwhile, Wall Street is broadly bullish on both. Should investors trust Burry's negative views?
Source
Originally published at www.fool.com.