By Joey Frenette
Publication Date: 2026-01-02 18:11:00
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It seems quite risky to place a bet on either Palantir (NASDAQ:PLTR) or Nvidia (NASDAQ:NVDA) moving forward, given valuations and the high stakes, as investors fear and dread an AI bubble bust. Undoubtedly, Michael Burry has bearish bets against both AI darlings. But he’s got more exposure to Palantir puts than Nvidia, likely because of the even hotter valuation and the potential for coming quarters to fall well short of expectations.
As for Nvidia, it’s the largest company on the planet, with ample catalysts in the new year. But until GPU sales fall off a cliff and buyers pass on Rubin, shares of Nvidia certainly do seem harder to short, at least in my opinion, especially when you consider that 24.5 times forward price-to-earnings (P/E) is nothing close to resembling a bubble. Though if the year ahead’s earnings fall well short of expectations, perhaps the seemingly cheap valuation metrics are more of a mirage than an indicator of real value.
For now, Rubin is projected to be a hit and a major catalyst that could help Nvidia stock continue defying the odds. The hyperscalers are ready to spend, and there’s probably going to be an arms race for the latest and greatest GPUs, especially when you consider the memory shortage and how it could incentivize backing up the truck whenever there’s stock, perhaps in a similar manner as the toilet paper boom during the early days of the COVID…
