Palantir Stocks Draw Bet While Nvidia Powers AI as Microsoft Expands

Billionaire investor Michael Burry recently placed a significant bet against prominent artificial intelligence stocks, Palantir and Nvidia, signaling his belief that the current AI boom mirrors the dot-com bubble. Burry allocated 66% of his $1.4 billion fund to put options on Palantir and 14% on Nvidia, noting that the S&P 500's CAPE ratio, currently over 39, historically precedes a substantial market decline. Despite Burry's caution, the demand for AI infrastructure continues to drive substantial growth across various sectors. Nvidia remains a central player, designing and manufacturing essential GPUs like the H100 and A100 chips, crucial for training and running complex AI models. Its CUDA software platform provides a strong competitive advantage, and the company consistently invests in research and development across AI architectures, robotics, and the metaverse. The broader AI ecosystem sees other companies thriving. Taiwan Semiconductor Manufacturing (TSMC) is a critical enabler, producing approximately 90% of the world's most advanced processors, including GPUs for companies like Nvidia. TSMC is also investing $165 billion in new factories in Arizona. ASML holds a unique position as the sole manufacturer of specialized machines needed to create tiny chip components. Micron Technology is gaining recognition for its vital High-Bandwidth Memory (HBM) chips, essential for accelerated computing in data centers, with its revenue jumping 49% in fiscal 2025 and the HBM market projected to double to $35 billion in 2025. Broadcom is expanding its AI chip business, securing a multi-billion dollar partnership with OpenAI and reporting $4.2 billion from AI in its Q3 sales, contributing to a 22% increase in total sales to $15.9 billion. Addressing the escalating power and data center requirements for AI, companies like Nebius Group, IREN, and Cipher Mining are emerging as crucial enablers. Nebius Group offers efficient AI utility services, boasting data centers that are 20% more power-efficient and securing a $17 billion five-year deal with Microsoft. IREN controls its entire power generation, utilizing low-cost renewable energy, and plans for 60,000 GPUs by 2026, including a $10 billion deal with Microsoft. Cipher Mining acts as a strategic landlord, securing large data center leases with Amazon and Alphabet (Google). Furthermore, Super Micro Computer's stock surged over 1,000% in 2023 due to its role in designing and manufacturing high-performance servers and storage solutions for AI, while Applied Digital shows strong growth with new AI contracts, projecting nearly 80% revenue growth. Despite these positive developments, the S&P 500's third-quarter earnings season highlighted investor concerns about the substantial spending on AI and broader economic uncertainties, with the 'Magnificent 7' tech stocks, including Nvidia, experiencing a rare down week.

Key Takeaways

• Billionaire investor Michael Burry bet over $1 billion against Palantir and Nvidia, citing unsustainable AI stock valuations and a high S&P 500 CAPE ratio.
• Nvidia is a dominant force in AI, providing essential GPUs (H100, A100) and its CUDA software platform for AI model training and operation.
• Taiwan Semiconductor Manufacturing (TSMC) produces about 90% of the world's most advanced processors, including GPUs for Nvidia, and is investing $165 billion in new Arizona factories.
• Broadcom expanded its AI chip business, securing a multi-billion dollar partnership with OpenAI and reporting $4.2 billion from AI in Q3 sales.
• Micron Technology, a key player in AI memory chips, saw its revenue jump 49% in fiscal 2025 and its stock rise 179% this year, with the HBM market expected to double to $35 billion in 2025.
• ASML is the sole provider of specialized machines required to create tiny chip components, making it crucial for advanced chip manufacturing.
• Companies like Nebius Group ($17B Microsoft deal), IREN ($10B Microsoft deal, 60,000 GPUs by 2026), and Cipher Mining (Amazon, Alphabet leases) are addressing AI's power and data center infrastructure demands.
• Super Micro Computer's stock surged over 1,000% in 2023 due to its role in providing high-performance servers and storage solutions for AI.
• Applied Digital projects nearly 80% revenue growth, supported by new AI contracts and a confirmed analyst price target of $43.70 per share.
• Despite strong AI sector growth, the S&P 500's Q3 earnings season showed investor concerns about AI spending returns and broader economic uncertainties, with "Magnificent 7" stocks experiencing a down week.

Michael Burry bets 1 billion dollars against AI stocks Palantir and Nvidia

Billionaire investor Michael Burry recently bet over $1 billion against popular artificial intelligence stocks Palantir and Nvidia. He put 66% of his $1.4 billion fund into put options on Palantir and 14% on Nvidia. Burry, known for his correct prediction before the 2008 housing crisis, believes the current AI boom is similar to the dot-com bubble. The S&P 500's CAPE ratio in October was over 39, a level that historically leads to a 30% market drop within three years. This suggests the S&P 500 could fall by late 2028.

Michael Burry warns investors about AI stock valuations

Billionaire investor Michael Burry recently placed a billion-dollar bet against leading artificial intelligence stocks Palantir and Nvidia. Burry, famous for predicting the 2008 housing market crash, used put options to signal a possible drop in their stock values. Nvidia produces essential chips for AI, and Palantir specializes in big data analytics. Burry believes the current high valuations of these AI companies are not sustainable. Investors are now closely watching if his latest warning will impact the wider stock market.

Three companies to profit from the AI data center boom

Nvidia, Taiwan Semiconductor Manufacturing TSMC, and ASML are three companies expected to benefit most from the growing AI data center boom. AI systems will need many more powerful GPUs and significantly more electricity by 2027. Nvidia is the top company for GPUs, with most of its profits coming from data center sales. TSMC is the world's leading chip maker, building GPUs for companies like Nvidia and investing $165 billion in new Arizona factories. ASML is the only company that makes the special machines needed to create tiny chip components.

Taiwan Semiconductor and Broadcom are top AI stocks

Taiwan Semiconductor TSMC and Broadcom are two excellent long-term investment choices in the artificial intelligence market. TSMC makes about 90% of the world's most advanced processors, giving it a huge advantage in AI chip manufacturing. Broadcom is expanding its AI chip business and recently partnered with OpenAI in a deal potentially worth billions. Broadcom's total sales increased 22% to $15.9 billion in Q3, with $4.2 billion from AI. Though AI stocks may be volatile for a short time, these companies should continue to do well in the long run.

Micron Technology offers great value in AI memory chips

Micron Technology is an underrated semiconductor company that offers great value in the AI infrastructure market. It makes compute and storage memory chips, including High-Bandwidth Memory HBM, which are vital for AI. Despite its revenue jumping 49% in fiscal 2025 and its stock price rising 179% this year, Micron is much cheaper than other AI infrastructure stocks. The HBM market is expected to double to $35 billion in 2025 and continue growing rapidly through 2030. HBM is essential for accelerated computing in data centers, helping to manage large AI workloads efficiently.

Applied Digital shows strong growth with new AI contracts

Applied Digital's analyst price target has been confirmed at $43.70 per share, showing ongoing confidence in the company's long-term future. This stable outlook comes as new AI contracts are reshaping its growth. Revenue growth projections remain very positive, estimated at nearly 80%. The discount rate increased slightly to 9.19%. Investors should stay updated on these changing expectations to understand Applied Digital's trajectory.

Nvidia remains a top AI stock for long-term growth

Nvidia is a leading company in the artificial intelligence revolution and a smart stock choice for investors. It designs and makes the essential graphics processing units GPUs, such as H100 and A100 chips, needed for training and running complex AI models. Nvidia's CUDA software platform gives it a strong advantage, making it difficult for competitors to displace. The company continuously invests in research and development, including AI architectures, software, robotics, and the metaverse. As the AI market grows rapidly, demand for Nvidia's products will remain strong, offering good long-term growth potential.

S&P 500 Q3 earnings show risks from AI spending and economy

The S&P 500's third-quarter earnings season is almost over, with 82% of companies beating their estimates and a combined earnings growth rate of 13.1%. Economic data is uncertain due to a government shutdown, showing modest job growth but a big increase in layoffs and low consumer confidence. The S&P 500 dropped 1.6% last week, and the "Magnificent 7" tech stocks, including Nvidia, performed poorly. Investors are concerned about the large amounts of money spent on AI and if it will lead to good returns. Nvidia, a key AI company, also had a rare down week and will report earnings on November 19.

Three companies solve AI power and data center problems

Nebius Group, IREN, and Cipher Mining are three companies poised for growth by solving AI's power and data center limitations. Nebius Group offers efficient AI utility services, with data centers 20% more power-efficient and a $17 billion five-year deal with Microsoft. IREN controls its entire power generation, using low-cost renewable energy, and plans for 60,000 GPUs by 2026, including a $10 billion deal with Microsoft. Cipher Mining acts as a strategic landlord, securing large data center leases with Amazon and Alphabet. These companies are crucial enablers in the AI ecosystem as demand for computing power surges.

Super Micro Computer stock surges over 1000 percent due to AI

Super Micro Computer SMCI stock has surged over 1,000% in 2023 due to its vital role in the artificial intelligence boom. The company designs and manufactures high-performance servers and storage solutions, which are crucial for training and running AI models. Super Micro Computer's success comes from offering customizable and integrated solutions, along with strong relationships with key players in the AI industry. As demand for AI capabilities increases, the company is well-positioned for continued growth. This makes it an interesting prospect for investors with a higher risk tolerance.

Sources

• Billionaire Michael Burry Sends Investors a $1 Billion Warning About the AI Boom. History Says the Stock Market Will Do This Next.
• Billionaire Michael Burry Sends Investors a $1 Billion Warning About the AI Boom. History Says the Stock Market Will Do This Next.
• 3 Stocks That Will Benefit Most From the AI Data Center Power Boom
• The Best Stocks to Invest $1,000 in Right Now
• This Underrated Semiconductor Stock Is the Last Great Value Play in AI Infrastructure
• How New AI Contracts Are Reshaping Applied Digital’s Growth and Analyst Expectations
• 1 Reason Nvidia Is the Smartest AI Stock to Buy With $100 Right Now
• S&P 500 Q3 2025 Earnings: AI Spending And Economy Fuel Market Risks
• AI's Bright Line Bottlenecks: 3 Stocks Poised to Break Through to Massive Growth
• This Undervalued Stock Is Up Over 1,000% This Year. Here's 1 Key Reason Why the Run May Continue