'The Big Short' Investor Michael Burry Bet $10 Million That AI Stocks Will Crash By 2027

Michael Burry, immortalized by Christian Bale in The Big Short, revealed bets against Nvidia and Palantir worth about $10 million, The Wall Street Journal reported.

His wager pays off if Nvidia drops 37 percent to $110 by 2027 (it’s around $190 now) and Palantir falls to $50 from roughly $200. Burry announced his AI prediction in his new Substack newsletter.

He argues the AI market has “detached from reality,” comparing it to the dot-com bubble. He also compares Nvidia to Enron, saying the company is using tactics that exaggerate chip life expectancy and accounting to inflate earnings.

Is he correct? Although Burry made $700 million betting against the housing market before the 2008 crash, many of his predictions over the past 15 years have not panned out.