'Big Short' investor Michael Burry says he's 'more confident than ever' of an AI reckoning in 2027
Investor Michael Burry has increased his bearish bets against AI-related stocks, predicting a market bubble burst by 2027. He has replaced outright short positions with put options on companies like Nvidia and Palantir, anticipating a significant market correction.
Why it matters
Burry's high-profile skepticism highlights growing investor concerns regarding the sustainability of the current AI-driven market rally.
Michael Burry of "The Big Short" fame. Bloomberg/Getty Images Michael Burry says he's "more confident than ever" that the AI boom will hit the skids next year. The "Big Short" investor said he's placed levered bets against AI stocks using bearish put options. Burry said the AI boom is riding a debt-fueled spending wave that is showing signs of strain. Michael Burry says the AI bubble might pop sooner than he thought. The investor of "The Big Short" fame said in a Substack post on Monday that he's "moving timelines up," chiefly because he expects "the bubble in AI may burst sooner than later." Burry said he's "more confident than ever before" that his pessimistic thesis will "play out over the next year." He previously said his " base case " was 2028.
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