Burry’s massive PUT positions against Palantir and NVIDIA represent a clear thesis: artificial intelligence stocks have entered bubble territory. The concentration in Palantir is particularly striking—the stock trades at astronomical valuations relative to traditional metrics, and Burry appears to be betting that reality will eventually catch up to these valuations.

This mirrors his 2005-2008 housing short in both conviction level and contrarian positioning. At that time, he was also largely alone in his bearish stance, and the market thought his positions were irrational until they weren’t.

From Q2 to Q3, Burry eliminated virtually his entire portfolio and rebuilt it from scratch. Gone are:

• UnitedHealth Group calls ($109.2M)
• Regeneron calls ($105M)
• Meta Platforms calls ($73.8M)
• Alibaba and JD.com calls ($61M combined)
• Estée Lauder positions ($52.5M)
• ASML, V.F. Corp, and others

This represents perhaps his most dramatic quarterly repositioning ever, suggesting he saw an urgent need to establish his AI short thesis.

Beyond his AI shorts, Burry’s bullish positions reveal a “back to basics” approach:

• Big Pharma over Biotech: Pfizer calls replace Regeneron, suggesting preference for stability over growth
• Energy Services: Halliburton calls indicate bullishness on traditional energy
• Medicaid over Commercial Health: Molina replaces UnitedHealth, focusing on government-backed healthcare
• Financial Services: SLM Corp adds exposure to consumer lending

This pattern suggests Burry believes the market will rotate from growth/tech to value/old economy as AI valuations correct.

With 90.1% of his portfolio in options (both puts and calls), Burry is using maximum leverage to express his views. The PUT options against Palantir and NVIDIA provide asymmetric payoffs—if he’s right about an AI bubble burst, the returns could be exponential. The CALL options on Pfizer and Halliburton similarly provide leveraged exposure to his bullish theses.

This aggressive use of derivatives suggests Burry believes we’re at a critical market inflection point where significant moves are imminent.

The Bruker preferred stock position is fascinating—it provides 6.375% income while the rest of his portfolio consists of volatile options positions. This suggests Burry wants some cash flow generation to potentially fund option positions or simply to hedge against the binary nature of his other bets.

Why Palantir specifically as his largest position? Several possibilities:

• Valuation Extreme: PLTR trades at valuations that imply near-perfect execution for decades
• Government Dependency: Heavy reliance on government contracts creates concentration risk
• Competition: The AI space is becoming increasingly crowded with well-funded competitors
• Narrative-Driven: Stock price seems driven more by AI enthusiasm than current fundamentals

Burry may see Palantir as the clearest expression of AI exuberance—similar to how certain mortgage securities were the clearest expression of housing bubble excess.