Michael Burry's Bets Against AI Stocks Nvidia and Palantir: What Investors Should Know

The S 500 and tech-heavy Nasdaq Composite indexes declined by about 1.6% and 3%, respectively, this week. The was also down over 1%. This was the Nasdaq Composite's worst week since April, when investors were rattled by President Donald Trump's announcement of the so-called "reciprocal tariffs."

There were likely a couple of factors that concerned investors this week. But the one that most spooked them was apparently well-known hedge fund manager Michael Burry's revealing, via a Securities and Exchange Commission (SEC) filing, that his Scion Asset Management fund instituted bearish bets on popular artificial intelligence (AI) stocks Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) in the third quarter, which ended on Sept. 30.

Burry filed the SEC 13F Form on Monday after the market close, and its market-moving effects began on Tuesday.

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Source Fool.com