{"id":128933,"title":"‘Big Short’ investor sparks global sell-off as AI bubble fears grow","publisher":"Share Talk","author":"sharetalk","published":"2025-11-04T16:08:12+00:00","modified":"2025-11-04T16:08:12+00:00","canonical_url":"https://www.share-talk.com/big-short-investor-sparks-global-sell-off-as-ai-bubble-fears-grow/","markdown_url":"https://www.share-talk.com/big-short-investor-sparks-global-sell-off-as-ai-bubble-fears-grow.md","json_url":"https://www.share-talk.com/big-short-investor-sparks-global-sell-off-as-ai-bubble-fears-grow.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["Amazon","ARTIFICIAL INTELLIGENCE","Bitcoin","BTC","Bubble","chipmaker","FRANCE","GERMANY","Japan","Michael Burry","Nvidia","OpenAI","Palantir","short positions","The Big Short"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/11/The-Big-Short-_.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"**Global stock markets** tumbled on Tuesday after reports that **Michael Burry**, the investor made famous by *The Big Short*, has placed a **$1.1 billion (£840 million) bet** against major **artificial intelligence stocks**, fuelling fears that an **AI-driven market bubble** may be nearing its peak.\n\nThe **S&P 500** and **Nasdaq Composite** opened sharply lower in New York, while share indexes in **France, Germany, and Japan** each **fell more than 1%**, mirroring a global **risk-off shift** among investors.\n\n[Bitcoin](https://www.share-talk.com/bitcoin-falls-to-five-month-low-as-crypto-market-struggles-to-recover/) also slid to its **lowest level since June**, extending recent declines across speculative assets.\n\nRegulatory filings revealed that **Burry’s hedge fund**, Scion Asset Management, has taken **short positions in chipmaker Nvidia** and **software company Palantir** — two of the leading beneficiaries of the year’s AI boom. He stands to make significant gains if their share prices fall.\n\nThe disclosure coincided with an **8.3% drop in Palantir** during premarket trading amid concerns that its **third-quarter results** signalled slowing momentum after a **400% surge over the past year**.\n\n**Nvidia** also reversed earlier gains, **slipping 1.7%**, while **Amazon** fell **1.3%**, giving back some of Monday’s rally sparked by its **$38 billion cloud deal with OpenAI**.\n\n**Keith Buchanan**, senior portfolio manager at **Globalt Investments**, said:\n\n> “The market’s been moving higher as warranted from an earnings standpoint, but at some point it seemed like it was positioning for a risk-off pull-back even on the slightest disappointment.”\n\nAnalysts warned that valuations across U.S. tech and AI names have become **stretched**, raising the risk of a **correction reminiscent of the dot-com bust of 2000**."}