Could the AI boom actually be another bubble waiting to burst? That’s the question Michael Burry keeps raising, and people are paying attention for one big reason: this is the same investor who famously predicted the 2008 housing crash before almost anyone else saw it coming. His story later became widely known through The Big Short.
Now, Burry is sounding alarms again, this time about artificial intelligence stocks. Back in 2025, he warned followers that markets sometimes drift into bubble territory when excitement gets too intense. In his view, AI may be heading down that path.
Why AI Hype may be too high
Things became more serious when Scion Asset Management revealed large bearish bets against NVDA and PLTR. Through put options, Michael Burry was effectively positioning himself for the possibility that both companies could eventually lose value. Altogether, those positions reportedly represented nearly $1.1 billion.
What makes the situation more interesting is that Burry’s warning comes while AI stocks are still flying higher. Nvidia shares alone climbed more than 70% over the past year as demand for AI chips exploded. So why bet against it now? Burry seems to believe the hype may be running ahead of reality.
He even called out Jensen Huang after an interview discussing AI growth. According to Burry, Huang appeared uncomfortable when pressed with tougher questions about the future of the industry.
Not everyone agrees
Not everyone agrees, though. Alex Karp openly mocked the bearish stance, arguing that AI companies are already making real money and reshaping entire industries. Supporters of the sector also point to rapidly growing firms like Anthropic as proof that AI demand is not slowing down anytime soon.
Burry has also been moving more money into gold and real estate, areas often viewed as safer during uncertain markets. Is he early once again, or simply too cautious this time around? That debate is only getting louder.
