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The 'Big Short' Guy Just Bet $1.1 Billion Against AI Giants—And Markets Are Still Absorbing It

Renowned hedge fund manager Michael Burry disclosed massive bearish positions on AI darlings after warning of market bubbles. The CEO of Palantir was not pleased.

🔗 Source

💡 DMK Insight

Burry’s bearish stance on AI stocks signals potential volatility ahead for tech investors. His warning about market bubbles isn’t just noise; it reflects broader concerns about inflated valuations in the tech sector. With many AI stocks riding high, traders should be cautious. If Burry’s predictions hold, we could see a significant correction, especially in names like Palantir that are heavily tied to AI hype. Watch for key support levels in these stocks—if they break, it could trigger a wave of selling. On the flip side, this could present a buying opportunity for contrarian investors looking to capitalize on oversold conditions. Keep an eye on sentiment shifts and any signs of capitulation among retail investors. The next few weeks could be pivotal, especially as earnings reports roll in and market reactions unfold.

📮 Takeaway

Monitor key support levels in AI stocks; a break could trigger significant selling pressure, while a bounce might offer buying opportunities for contrarians.

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