“Big Short” $1.1B Against Nvidia & Palantir: Is AI a Bubble?

$NVIDIA(NVDA.US) 2025 is hailed as the “Year of AI,” with global capital and tech giants doubling down on artificial intelligence. Nvidia, as the leading player, saw its market cap soar past $5 trillion, sparking a worldwide AI investment boom. Major tech firms like Meta, Google, Microsoft, and others have significantly ramped up their capital expenditures in the AI arena, reflecting strong confidence in future growth. However, amidst this optimistic market sentiment, the famous “Big Short” investor has made heavy bets against Nvidia and other core AI stocks, raising the question of whether an AI bubble is forming. To assess this, we need to consider three key aspects: first, whether AI is driving collaborative growth across the entire industry supply chain; second, whether it is truly revolutionizing production and business models, boosting efficiency and market demand; and third, whether high-growth companies are being valued in a way that accounts for their rapid earnings expansion. While valuations for some AI companies are indeed lofty, if performance keeps pace, these may not be signs of an imminent bubble. Ultimately, whether there’s an AI bubble depends on whether companies’ actual earnings can support their share prices, and whether market demand continues to exceed supply.