BING-JHEN HONG/iStock Editorial via Getty ImagesListen below or on the go on Apple Podcasts and SpotifyThe “Big Short” hedge fund manager takes positions against Nvidia and Palantir. (0:15) Palantir’s CEO calls Burry ‘bats--- crazy.’ (1:02) First Brands founder accused of misappropriating ‘maybe billions.’ (2:46)This is an abridged transcript of the podcast:Our top story so far, Michael Burry of “Big Short” fame is now betting against the AI trade.Burry’s hedge fund Scion Asset Management has bought put options on 1 million shares of Nvidia (NVDA) and 5 million shares of Palantir (PLTR).As you heard on Wall Street Breakfast, Palantir is down more than 5% despite stellar Q3 numbers in what looks to be valuation worries. Nvidia is off about 3%.Burry, who is best known for his prescient bet against the U.S. housing market ahead of the 2008 financial crisis, also shared some charts to bolster his thesis.One chart showed a sharp slowdown in the cloud growth segment at Amazon (AMZN), Alphabet (GOOGL)(GOOG) and Microsoft (MSFT). Another chart showed that the rise in U.S. tech capex growth is now matching dot-com bubble levels.Channeling Obi-Wan Kenobi, he wrote: "These aren’t the charts you are looking for. You can go about your business."But Burry’s bet drew the ire of Palantir CEO Alex Karp.Karp said on CNBC: “The two companies he’s shorting are the ones making all the money, which is super weird. The idea that chips and ontology are what you want to short is bat (blank) crazy.”"I do think this behavior is egregious, and I’m going to be dancing around when it’s proven wrong."Worries about AI valuations are weighing on the overall market, although stocks are off their opening lows. The Nasdaq is the weakest among the major averages.Strategist Marc-Andre Fongern says: “Have we gone too far too fast when it comes to AI? Probably. Is a healthy correction necessary? Yes. Would it be advisable not to get all panicky about it? Yes. Will AI remain the market's backbone? Definitely.”Crypto is also struggling in a risk-off move. Bitcoin (BTC-USD) hit its lowest level since late June, with more than $1.3 billion worth of leveraged crypto futures wiped out.Among active stocks, Uber (UBER) is sliding despite topping earnings forecasts, as its profit guidance disappointed. Q4 adjusted EBITDA is seen between $2.41 billion and $2.51 billion. The midpoint of $2.46 billion is just shy of the consensus of $2.49 billion.Yum! Brands (YUM) is higher after announcing it’s looking at options for struggling Pizza Hut, including a sale. Pizza Hut's operating profit has been declining for five consecutive quarters.Yum! also beat on the top and bottom lines for Q3.Pfizer (PFE) exceeded Q3 forecasts and raised its full-year earnings outlook, while reaffirming revenue guidance. But the drugmaker indicated a topline contraction of about 6% YoY as demand for its COVID pill and vaccine continues to decline.And Norwegian Cruise Line (NCLH) is plunging after a top- and bottom-line miss for Q3 and Q4 EPS guidance below estimates. Analysts said the numbers will do little to change the current negative narrative surrounding the cruise industry.In other news of note, auto supplier First Brands has filed a lawsuit against its founder, Patrick James, alleging misappropriation of hundreds of millions (if not billions) of dollars – which led to eventual bankruptcy.The FT said the accusations came after a probe was launched by the firm's newly appointed CEO and directors.First Brands filed for bankruptcy in late September with $12 million in the bank and a debt load of $12 billion – sending shockwaves through the credit markets. In October, the Justice Department opened an investigation into the collapse.The company accuses James of using funds for such things as a New York City townhouse and a celebrity personal trainer and chef.In a denial, a spokesperson for James said the company was making "baseless and speculative allegations."Back to AI, Cognizant Technology (CTSH) said it will use Anthropic's (ANTHRO) family of large language models, Claude, to accelerate AI adoption across enterprise customers and its own internal teams.It will provide Claude to up to 350,000 associates and use Claude Code to accelerate coding tasks, testing, documentation and DevOps workflows.And in the Wall Street Research Corner, how about a good, old-fashioned bull and bear standoff?Cantor Fitzgerald expects a continuing equity rally into the new year.While acknowledging bubble chatter, they argue that current valuations—around 23x earnings—are supported by solid earnings growth and historically low corporate debt-to-equity ratios.Bulls can also count on capital injections from a “historic technological transformation.”But Roth Capital Partners sees growing cracks in market breadth.With only 163 S&P 500 stocks finishing in the green during last week’s rally, the loss of additional areas of support besides tech “needs to be addressed,” they said.“If large cap growth stocks stumble, the overall market will be vulnerable,” they added.