Nvidia Advances AI Chips While Palantir Faces Investor Bet

Michael Burry, the renowned investor from "The Big Short," has placed a substantial bet against the artificial intelligence sector, disclosing over $1 billion in put options against Nvidia and Palantir on November 4, 2025. His firm, Scion Asset Management, allocated approximately 80% of its $1.1 billion notional portfolio value to these bets, with $912 million on Palantir and $187.6 million on Nvidia. This move signals Burry's belief that the AI market is an overvalued bubble, drawing parallels to his successful prediction of the 2008 housing crisis. Following this disclosure, shares of Palantir dropped 7.95% and Nvidia fell 3.9%, impacting other tech stocks and prompting strong criticism from Palantir CEO Alex Karp. These concerns about AI stock valuations are not isolated, as Asia-Pacific markets also experienced declines, mirroring Wall Street's drop. Japan's Nikkei fell 3.48% and South Korea's Kospi dropped 5.41%, with executives from Goldman Sachs and Morgan Stanley warning of a potential market correction. The S&P 500's forward price-earnings ratio now exceeds 23, nearing levels last seen in 2000. Despite these cautionary signals, many industry experts remain optimistic about the long-term prospects of established AI leaders. Forbes contributor Peter Cohan identifies Nvidia, Microsoft, and Alphabet (Google) as top AI stocks for 2026, citing their strong profitability, growth potential, and dominant positions in AI chips and cloud services. Nvidia, with a market capitalization over $5 trillion in October, continues to solidify its lead in the AI chip market, reportedly becoming the first customer for TSMC's advanced 16A manufacturing process. This strategic move is expected to further widen Nvidia's technological advantage over rivals like AMD, with plans to use the 1.6nm A16 process for its 2028 Feynman series GPUs. Beyond the giants, the AI sector sees significant activity across various applications. Western Digital Corporation reported strong first-quarter fiscal 2026 revenues of $2.82 billion, a 27% year-over-year increase, driven largely by demand from cloud and AI workloads. The company anticipates generative AI will boost storage demand and is shipping high-capacity drives, with next-generation HAMR drives secured by major customers through 2027. Duolingo Inc. surpassed revenue forecasts, with its AI-powered features proving profitable and contributing to a 34% jump in paid subscribers to 11.5 million. The company projects annual revenue between $1.028 billion and $1.032 billion. In the cybersecurity space, AI-native platforms are attracting significant investment. SOC Prime secured a strategic investment led by u.ventures to accelerate its AI-driven cyber defense transformation. Similarly, Daylight, an AI-native security platform, raised $40 million in funding led by Craft Ventures, with support from Bain Capital Ventures, to expand its U.S. market presence and develop its real-time threat detection and response capabilities. AI startup Reevo secured $80 million in funding from Zhu Ventures, Khosla Ventures, and Kleiner Perkins to develop a single AI-powered tool for managing the entire product-to-market process, with AI handling 92% of its front-end code. Furthermore, Donut Labs raised $15 million in seed funding, bringing its total to $22 million, to develop an AI-powered crypto trading browser that uses autonomous AI agents to execute trades. Meanwhile, OpenAI, the creator of ChatGPT, is rumored to be considering a public offering in 2026 or 2027, potentially at a valuation exceeding $1 trillion.

Key Takeaways

• Investor Michael Burry placed over $1 billion in put options against Nvidia ($187.6 million) and Palantir ($912 million) on November 4, 2025, signaling a belief in an AI market bubble.
• Palantir shares dropped 7.95% and Nvidia shares fell 3.9% following Burry's disclosure, with Palantir CEO Alex Karp criticizing the bet.
• Asia-Pacific markets experienced declines, and the S&P 500's forward price-earnings ratio exceeding 23 indicates broader concerns about high AI stock valuations.
• Nvidia, Microsoft, and Alphabet are identified as top AI stocks for 2026 due to strong profitability, growth potential, and market leadership in AI chips and cloud services.
• Nvidia is reportedly the first customer for TSMC's advanced 16A manufacturing process, aiming to use it for its 2028 Feynman series GPUs to maintain its AI chip dominance over rivals like AMD.
• Western Digital Corporation saw a 27% year-over-year revenue increase to $2.82 billion in Q1 fiscal 2026, driven by cloud and AI demand, with plans for next-generation HAMR drives secured through 2027.
• Duolingo Inc. surpassed revenue forecasts, with its AI features proving profitable and contributing to a 34% increase in paid subscribers, reaching 11.5 million.
• AI security platforms are attracting significant investment, with SOC Prime securing funding from u.ventures and Daylight raising $40 million from Craft Ventures and Bain Capital Ventures.
• AI startup Reevo secured $80 million in funding from Zhu Ventures, Khosla Ventures, and Kleiner Perkins to develop an AI-powered product management tool.
• Donut Labs raised $15 million in seed funding, totaling $22 million, to develop an AI-powered crypto trading browser with autonomous AI agents.

Big Short Investor Michael Burry Bets Billions Against AI

Michael Burry, the famous investor from "The Big Short" who predicted the 2008 housing crash, has placed a bet of over $1 billion against AI companies. His hedge fund, Scion Asset Management, disclosed put options against Nvidia and Palantir on November 4, 2025. This move suggests Burry believes there is an AI market bubble. Both Nvidia and Palantir saw their stock prices drop after the news. Palantir CEO Alex Karp expressed surprise at Burry's bet against these profitable companies.

Michael Burry Bets Big Against AI Giants Nvidia Palantir

Michael Burry, the investor known for predicting the 2008 housing crash, is now betting against the AI sector. His firm, Scion Asset Management, disclosed large put options on Palantir Technologies and Nvidia in its third-quarter filing. These bets represent about 80% of his $1.1 billion notional portfolio value, with $912 million on Palantir and $186 million on Nvidia. Burry's move suggests he believes the AI boom is an overvalued bubble, similar to past market manias. Despite strong earnings from both companies, Burry's history of bold calls raises questions about the future of AI stocks.

Big Short Investor Michael Burry Bets Over 1 Billion on AI Drop

Michael Burry, the famous investor from "The Big Short," has made a significant bet against two major AI companies. His firm, Scion Asset Management, disclosed buying over $1 billion in put options against Nvidia and Palantir on November 4. This move follows his prediction of the 2008 financial crisis. Both Palantir and Nvidia saw their shares fall after the news, despite strong year-to-date performance. Palantir CEO Alex Karp strongly criticized Burry's bet, stating it motivates them to achieve even better results.

Michael Burry Bets 1 Billion on AI Market Collapse

Michael Burry, the investor known for "The Big Short," has bet over $1 billion that the AI industry will face a collapse. His fund, Scion Asset Management, purchased $187.6 million in put options on Nvidia and $912 million on Palantir. This move signals his belief that the AI sector is an overvalued bubble, similar to his successful bet against the 2008 housing market. Burry shared cryptic posts on X hinting at market bubbles before disclosing his bets. Despite Palantir's strong earnings, the news caused both companies' shares to pull back, and Palantir CEO Alex Karp expressed strong disapproval.

Michael Burry Bets Against AI Giants Nvidia and Palantir

Michael Burry, the investor famed for "The Big Short," has made a large bet against artificial intelligence companies. His fund, Scion Asset Management, disclosed purchasing $187.6 million in put options on Nvidia and $912 million on Palantir in an SEC filing. Burry hinted at his skepticism about an AI bubble through cryptic social media posts, comparing current market conditions to past crashes. Following his announcement, shares of Palantir dropped 7.95% and Nvidia fell 3.9%, impacting other tech stocks. Palantir CEO Alex Karp publicly criticized Burry's actions, calling them "super triggering" and motivating.

Top AI Stocks for 2026 Include Nvidia Microsoft Alphabet

A Forbes article by Peter Cohan identifies Nvidia, Microsoft, and Alphabet as the top AI stocks to consider in 2026. These companies are expected to lead due to their strong positions in AI chips and cloud services. Despite Wall Street concerns about a potential AI bubble, these tech giants are highly profitable and show strong growth potential. Nvidia, with a market capitalization over $5 trillion in October, dominates the GPU market, while Microsoft and Alphabet provide essential cloud platforms for AI applications. The selection criteria focused on strong growth forecasts, potential to exceed expectations, and high profitability.

Nvidia Microsoft Alphabet Lead 2026 AI Stock Picks

Forbes contributor Peter Cohan highlights Nvidia, Microsoft, and Alphabet as the top AI stocks for 2026. These companies are expected to maintain their leadership due to their strong market positions in AI chips and cloud services. Despite concerns about an AI bubble, these tech giants are highly profitable and have significant growth potential. The article also notes that OpenAI, maker of ChatGPT, might go public in 2026 or 2027 with a valuation over $1 trillion. Cohan selected these stocks based on strong growth forecasts, potential to exceed expectations, and high profitability.

Asia Markets Fall Amid Concerns Over AI Stock Values

Asia-Pacific markets experienced declines, mirroring Wall Street's drop due to worries about high AI stock valuations. Major indexes like Japan's Nikkei fell 3.48% and South Korea's Kospi dropped 5.41%. Even Palantir shares slid 8% despite reporting strong earnings, showing investor caution. Executives from Goldman Sachs and Morgan Stanley have warned of a potential market correction. The S&P 500's forward price-earnings ratio is now above 23, nearing levels last seen in 2000, indicating stretched valuations.

SOC Prime Gets Investment to Boost AI Cyber Defense

SOC Prime announced on November 5, 2025, that it has secured a strategic investment. This funding round was led by u.ventures. The company plans to use the investment to speed up its transformation in AI-driven cyber defense. This move aims to enhance its capabilities in protecting against cyber threats using artificial intelligence.

Daylight Raises 40 Million for AI Security Platform Expansion

Daylight, an AI-native security platform, has raised $40 million in investment. Craft Ventures led the funding round, with support from Bain Capital Ventures and other cybersecurity leaders. Founded by Hagai Shapira and Eldad Rodich, Daylight aims to transform managed detection and response services using AI. The new capital will help expand its presence in the U.S. market and speed up the development of its AI-powered platform. Daylight's system uses AI agents to detect and respond to threats in real time, addressing the rising costs and frequency of cyberattacks.

AI Startup Reevo Secures 80 Million from Top Investors

AI startup Reevo has successfully raised $80 million in funding from a seed round in 2024 and a Series A in 2025. Zhu Ventures led the $10 million seed round, while Khosla Ventures and Kleiner Perkins led the $70 million Series A. Reevo, co-founded by David Zhu, is developing a single AI-powered tool to manage the entire process of bringing new products to market. The company aims to replace multiple existing applications with its integrated service, leveraging AI for 92% of its front-end code. This new funding will accelerate product development, research, and hiring more engineering talent.

Western Digital Sees Strong Growth from Cloud and AI Demand

Western Digital Corporation (WDC) started fiscal 2026 with strong revenue growth, driven by high demand from cloud and AI workloads. In the first quarter, revenues reached $2.82 billion, a 27% increase year over year, with cloud services making up 89% of this. The company expects generative AI to further boost storage demand across various devices and data centers. Western Digital is shipping high-capacity drives like ePMR and UltraSMR, with plans for next-generation HAMR drives already secured by major customers through 2027. Competitors like Seagate Technology and NetApp are also seeing significant growth from AI initiatives, but Western Digital faces challenges from customer concentration and a leveraged balance sheet.

Duolingo AI Features Prove Profitable Beats Revenue Forecast

Duolingo Inc. surpassed Wall Street's third-quarter revenue estimates and increased its annual revenue forecast. The language-learning app saw a rise in paying subscribers for its AI-powered tiers, with paid users jumping 34% to 11.5 million. CEO Luis von Ahn stated that the company's AI features are profitable, even though they led to a slightly lower profit margin of 72.5% in the third quarter. Duolingo's Q3 revenue hit $271.7 million, beating expectations, and the company now projects annual revenue between $1.028 billion and $1.032 billion. Growth was notably strong in China, partly due to a partnership with Luckin Coffee.

Nvidia Secures AI Chip Dominance with TSMC 16A Process

Nvidia, a leader in the AI chip market, is reportedly the first customer for TSMC's advanced 16A manufacturing process. This move could significantly widen its technological lead over rivals like Broadcom and AMD. Nvidia, a fabless chipmaker, relies heavily on TSMC, the world's largest foundry, for manufacturing its powerful AI GPUs. The company has already secured a large portion of TSMC's advanced chipmaking capacity. By adopting the 1.6nm A16 process for its 2028 Feynman series GPUs, Nvidia aims to deliver even more powerful and energy-efficient AI processors, further solidifying its market dominance.

Donut Labs Raises 15 Million for AI Crypto Trading Browser

Donut Labs has secured $15 million in seed funding, bringing its total funding to $22 million in just six months. The company plans to use these funds to develop its AI-powered crypto trading browser, Donut Browser. This "agentic browser" will embed autonomous AI agents that can analyze markets, assess risk, and execute cryptocurrency trades even when users are offline. Investors like BITKRAFT and Sky9 Capital are backing Donut Labs, seeing its potential to simplify decentralized finance. With over 160,000 users on its waitlist, the company aims to make on-chain participation easier and offer personalized automation for decentralized markets.

Sources

• Famed ‘Big Short’ Investor Bets a Billion Against AI
• ‘Big Short’ Investor Michael Burry Is Betting Big Against the AI Revolution
• Michael Burry of 'The Big Short' Made a Huge Bet Against These Two AI Giants
• The Big Short Guy Just Bet $1 Billion That the AI Bubble Pops
• The Big Short investor who called 2008 crash is betting big against AI
• 3 AI Stocks To Buy In 2026
• 3 AI Stocks To Buy In 2026
• Asia-Pacific markets set to fall, tracking Wall Street declines on AI valuation concerns
• SOC Prime Secures Strategic Investment Led by u.ventures to Accelerate AI-Driven Cyber Defense Transformation
• Daylight bags $40m to expand AI-native security platform
• Khosla Ventures and Kleiner Perkins Back AI Startup Reevo
• Can WDC's Revenue Momentum Continue on Rising Cloud and AI Demand?
• Duolingo says AI features 'profitable' as it beats revenue estimates, raises forecast
• Did Nvidia Secure Its Artificial Intelligence (AI) Dominance With This Move?
• Donut Labs Raises $15 Million Seed Funding for AI Crypto Trading Browser