Amid growing skepticism about the AI boom, "Big Short" investor Michael Burry recently cautioned retail investors, stating, "Sometimes we see bubbles."

On Friday, Burry posted this seemingly cryptic warning on social media platform X: "Sometimes we see bubbles, sometimes there are things to do, and sometimes the only winning move is not to play." However, he did not specify which "bubble" he was referring to.

Previous filings revealed that his Scion Asset Management liquidated nearly all its publicly traded stock holdings in Q1 2025 while establishing bearish positions against NVIDIA.

The 54-year-old fund manager is known for his cautionary market and economic commentary. His bet against mortgage securities in the late 2000s, depicted in the film "The Big Short," made him a household name.

Burry's warning comes as the soaring stock prices of a handful of tech companies, led by NVIDIA, have drawn market attention. NVIDIA became the first company to surpass a $5 trillion market cap this week, now accounting for nearly one-tenth of the S&P 500—exceeding the GDPs of India, Japan, and Germany.

According to a May 16 regulatory 13F filing, Scion Asset Management exited nearly all its stock positions in Q1 2025, retaining only Estée Lauder. Simultaneously, the fund purchased put options on NVIDIA.

The filing noted that these put options on NVIDIA and other companies "may be used to hedge long positions not required to be reported in the 13F." This disclosure leaves room for interpretation regarding Burry's bearish stance.