Michael Burry's Newsletter Launch: AI Bubble Views and Market Reaction on NVDA, PLTR

Michael Burry, known for predicting the 2008 housing crash, launched a $379 annual Substack newsletter titled “Cassandra Unchained” on November 24, 2025, after closing his hedge fund [1]. The newsletter criticizes AI stocks like Nvidia (NVDA) and Palantir (PLTR), comparing NVDA to Cisco during the dot-com bubble [3]. Despite Burry’s bearish stance, both stocks rose on the launch day: NVDA closed at $182.55 (+1.70%) and PLTR at $162.25 (+3.04%) [0]. The broader Technology sector gained 2.085% that day, overshadowing Burry’s comments [0]. Reddit discussions reflect skepticism: users view the newsletter as a “cash grab” to fund losing short positions and question the timing of his AI bubble thesis [2].

1. Market Discounting Burry’s Views: The positive price movements of NVDA and PLTR suggest the market is discounting Burry’s bearish comments, possibly due to past timing issues and Reddit’s skeptical sentiment [2][0].
2. Tech Sector Strength: The tech sector’s 2.085% gain on launch day indicates strong investor demand for tech stocks, overriding bearish signals from Burry [0].
3. Burry’s Signaling: The newsletter launch signals Burry’s doubled-down bearish stance on AI, but the market’s reaction shows limited immediate impact [1][3].

• Risks
  : If Burry’s AI bubble thesis is correct, NVDA and PLTR could face significant declines, though timing remains uncertain [2]. His short positions on these stocks may increase volatility if he shares more details in future newsletters [0].
• Opportunities
  : Investors can monitor Burry’s newsletter content for further insights into AI valuations. The ongoing tech sector rally presents short-term opportunities for tech stock holders [0].
• Balance
  : While Burry’s concerns warrant attention, the current market momentum suggests investors should weigh his views against broader sector trends [0][2].

• Price Movements
  : NVDA (+1.70%) and PLTR (+3.04%) closed higher on launch day (Nov24,2025) [0].
• Sentiment
  : Reddit users are skeptical of Burry’s motives (cash grab) and timing of his AI bubble thesis [2].
• Data Gaps
  : Exact details of Burry’s short positions, intraday price reactions, and newsletter subscriber count are unavailable [0].