Michael Burry Buys Put Options on Nvidia, Micron, and Palantir as "The Big Short" Investor Predicts a 1987-Style Market Crash
2026-09-30 17:30
•Adam Spatacco •The Motley Fool
•••••• •••••••••••• Axe Cap view
Burry’s AI Crash Call and What It Means for SA Investors
Michael Burry bets against AI stocks, but South African investors should tread carefully.
Michael Burry’s recent move to buy put options on Nvidia, Micron, and Palantir has stirred up fears of a 1987-style crash sparked by AI hype. Burry is known for his bearish calls, especially from the 2008 crisis, but his track record since then hasn’t been spot on. On the JSE front, we don’t have a direct equivalent of Nvidia or Micron, but the USD/ZAR pair offers a way to gauge risk sentiment. A sharp sell-off in US tech could weaken the rand, hurting local firms with offshore earnings like Naspers and Prosus. Yet, the difference now is these AI-linked companies have real profits backing them, unlike the dot-com bubble’s empty promises. South African banks like Standard Bank and FirstRand should be watched too; if a global tech correction hits, credit could tighten. We advise a cautious watch, not an outright sell-off. this is just our opinion and not financial advice
Hold your positions in SA tech-linked stocks like Naspers and Prosus, but keep stops tight and monitor the USD/ZAR closely for risk shifts. Consider trimming cyclical exposure in banks until tech-driven market fears subside.
- Naspers
- USD/ZAR
- US tech sell-off deepens
- Rand weakness accelerates
6/10
Michael Burry, famous for predicting the 2008 housing crisis, is now betting against AI stocks by purchasing put options on Nvidia, Micron, and Palantir. He warns of an impending 1987-style market crash driven by AI euphoria and unsustainable leverage. However, the article argues that unlike the dot-com bubble, these companies have real revenue and profitability, and Burry's bearish track record since 2008 suggests caution in following his predictions.
Our take is based on reporting first published by The Motley Fool.