A hedge fund manager named Michael Burry is stirring things up again. This guy became a legend on Wall Street after successfully shorting the real estate market before the 2008 financial crisis, which was made into the movie "The Big Short."

Recently, he made a bold bet of $1 billion in Q3 by shorting two leading AI companies:
- NVIDIA: shorting $186 million
- Palantir: shorting $912 million

This is ridiculous. The stocks of these two companies have increased by 2200% and 1200% respectively in the last three years. NVIDIA is the king of AI chips, and Palantir's AI software is also selling like hotcakes. Both companies' latest financial reports are explosive—revenue skyrocketed and profits are substantial.

But Burry believes that these two stocks are going to fall? Does he know some insider information? Or has the AI bubble really been inflated too much?

However, it should be noted that Burry is not always right. In 2023, he shouted "sell" on X, and a few months later admitted that he was wrong in his judgment. Was this a short-term game or a long-term shorting view? It is still unclear.

Bottom line: Don't follow the trend to short these AI stocks. But if you hold these shares, it's indeed time to examine whether to reduce your position or hold firm. The key is to focus on long-term fundamentals in investing and not be scared off by short-term fluctuations.