In 2008, hedge fund manager Michael Burry accurately predicted the subprime mortgage crisis and was portrayed by Christian Bale in “The Big Short.” Recently, Burry made headlines for shorting stocks and buying put options on Nvidia and Palantir Technologies.

Burry’s bearish stance on AI stocks is based on frothy valuations, with concerns about accounting practices and high ratios like Palantir’s P/S of 113. He also questions Nvidia’s product life cycle and customer depreciation of AI infrastructure.

Burry’s critique of Tesla’s overvaluation and Elon Musk’s pay package align with traditional valuation standards, with Tesla’s high P/S ratio and expanding P/E multiple. While investors support Tesla’s AI ambitions, Burry’s skepticism could indicate a potential short position.

Burry’s recent moves, including deregistering his hedge fund and launching a paid newsletter, suggest he may have more trades up his sleeve. As he expresses negative views on the AI landscape, Tesla could be his next big short target.

Read more at Nasdaq: Prediction: This Artificial Intelligence (AI) Stock Could Be Michael Burry’s Next Big Short