Michael Burry Buys Put Options on Nvidia, Micron, and Palantir as "The Big Short" Investor Predicts a 1987-Style Market Crash

Michael Burry, the investor who called the 2008 housing crisis, has bought put options on NVDA, MU, and PLTR, betting against three AI-linked names. He warns of a 1987-style market crash, which he attributes to AI euphoria and unsustainable leverage.

The positioning matters because it targets three distinct AI exposures at once: NVDA, MU, and PLTR. Put options give Burry defined-risk downside bets, and the choice of a 1987 comparison signals he expects a sudden, sharp break rather than a slow deflation.

The counterargument, per The Motley Fool, rests on fundamentals. Unlike dot-com-era names, these companies generate real revenue and profitability. The article also flags Burry's bearish track record since 2008 as a reason for caution in following his calls. In other words, the man who nailed one crash has been publicly bearish for well over a decade.

Interpretation: the headline risk here is sentiment, not new company-specific data. Nothing in the report points to a change in earnings or guidance at NVDA, MU, or PLTR. The story is a high-profile bearish bet landing on crowded AI positions.