Hedge fund investor Michael Burry, who was played by actor Christian Bale in the 2015 film The Big Short, a film about traders who made millions from predicting the collapse of the US housing bubble in 2008, has turned his attention to AI.
Mr Burry’s company revealed it has bought financial products, called options, that will pay out if the price of AI-linked companies Nvidia and Palatir shares fall.
It comes after the trader posted on X: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
Markets worldwide have climbed in over the year as investors placed their chips in companies linked to AI, including Nvidia, Intel and AMD.
“It seems fatigue over AI and the current earnings run has investors questioning the sustainability of the AI hype. That’s dragged down AI companies overnight in markets,” said financial analyst Farhan Badami.
Many jumps in tech shares have…
