Michael Burry Doubles Down on Palantir Short Despite Trump’s Endorsement, Expands Nvidia Bet

Michael Burry, the investor famously depicted in "The Big Short," has reiterated his significant bearish stance on Palantir Technologies (PLTR), a prominent artificial intelligence software firm. This conviction persists even in the face of a recent public endorsement from former President Donald Trump, which momentarily buoyed the company’s stock. Burry revealed in a Substack post on Friday that he continues to hold long-dated put options on Palantir, a strategy he initiated in the fall of 2025 and has actively managed by rolling the positions forward.

Specifically, Burry detailed his current holdings: "I now own the June 17 2027 Strike Price 50 Puts and the Decembers 19, 2026 Strike Price 100 Puts. I am not selling these today." These put options represent a bet that Palantir’s stock price will fall below the specified strike prices by their respective expiration dates.

The timing of Burry’s disclosure coincided with a Truth Social post from Donald Trump on Friday, in which the former president lauded Palantir’s "great warfighting capabilities and equipment," urging readers to "Just ask our enemies!!!" This statement provided a brief lift to Palantir’s shares, helping them recover from intraday lows. However, the positive impact was overshadowed by broader market trends, as the stock ultimately concluded the week with a substantial 13.7% decline. This downturn contributed to a cumulative loss of approximately 28% for Palantir stock in 2026, as of the report’s publication.

Burry elaborated on his rationale, observing that Palantir’s stock has significantly weakened since reaching a peak near $200 in the previous year. He firmly believes the company remains "wildly overvalued." While acknowledging the possibility of short-term rallies, Burry’s analysis suggests that Palantir’s intrinsic value is considerably less than its current market valuation, estimating it to be "well under $50/share." He noted, "Trump’s post rallied the stock after the stock had fallen 18% the last three days. The stock may catch a wind here. It has been selling off with software stocks. As mentioned, I continue to hold the puts, as I believe the fundamental value of this company is well under $50/share." Palantir concluded trading on Friday at $128.06 per share.

The geopolitical landscape has added another layer to the narrative surrounding Palantir. The company’s extensive business dealings with U.S. military and intelligence agencies have led some observers to view it as a potential beneficiary of the heightened tensions surrounding the Iran conflict. During Trump’s previous administration, Palantir secured new government contracts and expanded its collaboration with the Pentagon. CEO Alex Karp has maintained consistent engagement with the administration, navigating earlier periods of tension.

This is not the first time Burry has publicly taken a bearish position on Palantir. Last year, his former hedge fund, Scion Asset Management, disclosed bearish positions against both Palantir and the AI darling Nvidia (NVDA). These disclosures drew a strong reaction from Palantir CEO Alex Karp, who characterized Burry’s wagers as "super weird" and "bats— crazy."

Adding to his portfolio of bearish bets, Burry also revealed on Friday that he has increased his short position on Nvidia. He detailed this expansion, stating, "I added to my NVDA puts, this time buying the January 27 Strike 115 puts at 3.30." Burry acknowledged the high implied volatility surrounding Nvidia, which led him to consider outright shorting the stock. However, he opted for put options to limit his maximum potential loss. He also noted that "time decay – also known as theta decay – won’t be significant until 2 months out," indicating a strategic approach to managing the decay of the options’ value. He added, "I would consider rolling before that if necessary," suggesting a flexible approach to his Nvidia short.

The ongoing saga of Michael Burry’s bearish wagers against prominent tech companies like Palantir and Nvidia underscores the market’s scrutiny of high-valuation stocks, particularly in the rapidly evolving artificial intelligence sector. His continued commitment to these positions, despite external factors like political endorsements, highlights his distinct investment philosophy and his persistent belief in his analytical assessments of company fundamentals.