Michael Burry, of Scion Asset Management, has been skeptical of the market’s rapid rise for years. Recently, he disclosed a bearish position in a popular AI stock that has surged over 1,290% in the past five years. Burry famously profited off the mid-2000s housing bubble crash and is known for his contrarian views.

In a recent 13F filing, Scion Asset Management revealed a $912 million bet against Palantir and 1 million puts on Nvidia. Burry has been vocal about his bearish outlook on the U.S. stock market. He posted charts showing slowed cloud growth and high tech expenditure, fueling concerns about a bubble.

Palantir, up 156% this year, trades at nearly 300 times forward earnings. Short sellers like Burry have criticized the stock’s valuation. Palantir’s CEO defended the company’s performance, with strong third-quarter results and higher revenue guidance. Despite Palantir’s innovative AI technology, concerns about overvaluation persist.

Considerations for investing in Palantir: The Motley Fool Stock Advisor team excludes Palantir from their top 10 stock picks. With a history of market-crushing returns, they offer insights into potential high-growth stocks. Palantir’s CEO disputes criticisms from short sellers like Burry, citing the company’s revenue growth and innovative technology.

Read more at Yahoo Finance: Has Contrarian Michael Burry Found His Next Big Short? The Famed Investor Is Betting the Farm Against an Artificial Intelligence Stock That Is Up 1,290% Over the Past 5 Years