💥 THE BIG SHORT 2.0

🔺 Signs of an AI bubble are becoming increasingly clear: stock valuations have reached dangerous heights, corporate debt is rising, and a sustainable business model has yet to emerge. Against this backdrop, investor Michael Burry — who famously predicted the 2008 mortgage crisis — has placed a bet against the leaders of the AI market: Nvidia and Palantir. His fund, Scion Asset Management, acquired options that will profit if their shares decline. The positions are estimated at roughly $900 million in Palantir and $200 million in Nvidia.

🔺 The move is telling: Burry clearly sees parallels with the dot-com bubble. Nvidia is now valued at nearly $5 trillion, and Palantir has tripled in price over the past year — yet much of this growth is driven by expectations rather than solid earnings. Excessive multiples, massive data-center investments, and cross-holdings among AI companies are fueling a loop of self-sustaining euphoria.

🔺 For traders and investors, this is a signal that the “base cycle” of tech expansion may be nearing its end. When expectations outpace reality, correction becomes inevitable. Burry’s short bet against the AI darlings is more than a bearish play — it’s a warning: even the brightest technologies are not immune to the laws of the cycle.

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