Renowned investor Michael Burry, famous for his role in "The Big Short," has taken a massive short position against AI leader NVIDIA and Palantir, according to recent filings. His bearish options on these two stocks total over $1 billion in notional value, accounting for 80% of his portfolio.

Earlier, Burry had issued a cryptic warning to retail investors about market euphoria. His latest move aligns with growing concerns among Wall Street veterans over stretched valuations in U.S. equities. Several prominent figures have cautioned that a significant market correction may be imminent.

Goldman Sachs CEO David Solomon predicts a potential 10%-20% pullback in U.S. stocks over the next 12-24 months. Similarly, Capital Group President and CEO Mike Gitlin acknowledges strong corporate earnings but warns that current valuations remain challenging.

Burry’s aggressive short positions highlight mounting skepticism toward high-flying tech stocks, particularly in the AI sector.