Investor Michael Burry continues to hold short positions in Palantir (PLTR), reportedly expecting a significant correction.

At the end of 2025, both Palantir and Nvidia were widely cited among the stocks raising the greatest bubble concerns due to their extraordinary gains during the AI-driven equity cycle.

• PLTR became a retail and institutional AI favorite
• Valuations expanded aggressively relative to fundamentals
• Momentum flows amplified price acceleration

Burry’s positioning reflects a view that:

• narrative-driven rallies can overshoot intrinsic value
• late-cycle AI euphoria may unwind sharply
• high-multiple stocks remain vulnerable to sentiment shifts

For traders, this sets up a classic tension between: 📈 structural AI growth vs. 📉 valuation compression risk

Volatility in PLTR may remain elevated as long as positioning stays polarized.