Trader Berry warns of a new bubble in the stock market

Michael Burry, known for predicting the 2008 financial crisis, has once again warned of a possible new market bubble. His fund, Scion Asset Management, has disclosed bearish bets against technology stocks, including Nvidia and Palantir. This information came just days after he warned investors about the risks of excessive market euphoria.

Source Minfin

Burry purchased put options, which are profitable when stocks fall, while his fund also bought call options on Halliburton and pharmaceutical companies. Following Berry's announcement, Palantir's shares fell 8.1%, causing concern among investors, especially in the context of the hype surrounding artificial intelligence, which is linked to “circular deals” between large technology companies.

These actions are not new for Berry, as he has previously bet on a decline in Nvidia shares. However, for the third quarter of 2025, he did not indicate the possibility of hedging, which may indicate his more decisive approach to the decline in shares. Noting the escalation of market risks, Berry is actively drawing attention to the state of the market and possible threats.