Renowned investor Michael Burry, famous for predicting the 2008 housing market crash, has placed massive bearish bets on two leading AI companies.

According to a quarterly regulatory filing released on Monday (as of September 30), Burry’s Scion Asset Management initiated significant short positions via put options—contracts that profit from stock declines—against NVIDIA (NVDA) and Palantir Technologies (PLTR).

Scion disclosed put options equivalent to 1 million NVIDIA shares, valued at approximately $186.6 million, and 5 million Palantir shares, worth around $912 million.

The filing reflects only Q3 trades, and Scion’s current holdings may differ.

Burry’s move comes amid surging investor enthusiasm for artificial intelligence (AI). NVIDIA, the AI chip leader and the first company to hit a $5 trillion market cap, has seen its stock rise 54% this year, extending a three-year rally fueled by soaring demand for AI hardware. The stock closed up 2.2% on Monday. Meanwhile, Palantir, an AI data analytics firm benefiting from defense spending growth, has surged 174% year-to-date. Its shares rose 3.4% on Monday but fell 4.3% in after-hours trading following earnings.

Notably, Scion held no positions in either company in the prior quarter, signaling a strategic shift in Burry’s portfolio.

Days before the filing, Burry broke a two-year silence on social media platform X, posting warnings and sharing charts to support his view of a growing tech bubble.

He wrote, “Sometimes, we see bubbles. Sometimes, we act on them. But sometimes, the only winning move is not to play.”

On Stocktwits, retail sentiment toward NVIDIA cooled from “extremely bullish” to “bullish” by Tuesday morning, though discussion volume remained “high.” In contrast, Palantir retained an “extremely bullish” sentiment, with chatter reaching “very high” levels.

Burry gained fame for profiting from the 2008 housing crash, a bet immortalized in *The Big Short*. His latest bearish wagers emerge as debates intensify over whether AI-driven stock valuations have entered bubble territory—with the S&P 500 (SPX) and Nasdaq 100 (NDX) both at record highs.

While shorting NVIDIA and Palantir, Burry took bullish call options on oilfield services firm Halliburton (HAL) and pharmaceutical giant Pfizer (PFE).

Scion also holds shares in athletic apparel maker Lululemon (LULU), scientific instruments provider Bruker (BRKR), health insurer Molina Healthcare (MOH), and student lender SLM Corp (SLM).

As of September 30, Scion’s portfolio comprised eight positions, down from 15 at the end of June. The firm managed approximately $155 million in assets as of March, per regulatory filings.