Big tech stocks are being called out as overvalued by Michael Burry, famous for “The Big Short.” He’s sounding alarms about inflated profits and opaque deals in the AI “food chain,” focusing on 4 major tech firms. Nvidia and Palantir are among those under scrutiny, with warnings of potential downturns.

Nvidia’s earnings report is upcoming, but the market is currently reacting negatively, signaling a possible shift. Palantir’s CEO, Alex Karp, disputes the concerns raised by Burry, but the charts suggest a different story. Meta and Oracle are also facing downward trends, indicating high risk despite potential rallies.

Burry’s warnings are gaining attention, with predictions of market turmoil if leveraged investors face margin calls. The stock market’s choppy trend and recent pullback in tech stocks suggest caution. While signs point to a potential downturn, uncertainty prevails, emphasizing the need for vigilance in the current market climate.

Read more at Yahoo Finance: Michael Burry Slams NVDA, PLTR, META, ORCL. Here’s What the Charts Say About His Tech-Focused ‘Big Short.’