Semis Surge, Michael Burry’s Shorts Feel the Pressure — But Don’t Expect Him to Run for Cover After His Latest “1987-Style” Crash Warning Quick Read – Burry’s bearish puts on AI stocks like Palantir and Nvidia may be right in thesis but dangerously early in timing. – A…
87-style crash would create quality buying opportunities, given that investors who held through that crash recovered within two years. – After a strong recovery bounce for the semiconductors and most other names tied to the AI trade that Dr. Michael Burry is betting against by way of bearish put options, the big question is whether Dr
Burry has gotten the timing wrong or perhaps the whole bearish thesis about the AI trade as a whole. Undoubtedly, valuations on a number of names are certainly hard to justify. Whether we’re talking about Palantir (NASDAQ:PLTR), Tesla (NASDAQ:TSLA), or even Caterpillar (NYSE:CAT), it’s easy to see why Dr.
Burry has set his sights on such names. At the same time, overvaluation and overbought conditions don’t necessarily mean that a short will be a walk in the park. Overvalued stocks can stay the way for quite a while and, what’s more, they can become even more overvalued.