Burry, who rose to prominence through the contrarian wagers detailed in The Big Short, confirmed he has replaced outright short positions with bearish put options on a suite of tech-heavy assets. His new targets include Nvidia, Palantir, Micron, Nebius, Oracle, Caterpillar, the iShares Semiconductor ETF, and the Nasdaq 100. These contracts, set to expire between June and December next year, signal his conviction that a market correction is imminent.
Michael Burry pulls forward his forecast for an AI market collapse
With his sights set on a 2027 reckoning, investor Michael Burry is recalibrating his bearish bets. The figure famous for predicting the 2008 housing crash now expects the artificial intelligence bubble to deflate sooner than his previously projected 2028 timeline, prompting a shift in his portfolio strategy toward aggressive put options.
The investor identifies the current infrastructure boom as an unsustainable house of cards. He argues that AI companies are relying heavily on debt to fund massive data center builds, creating a fragile ecosystem that cannot withstand a slowdown in spending or the mounting pressure of high interest rates. According to Burry, the cracks are already showing; he points to signs of strain within hyperscalers and warns that accounting maneuvers are being used to mask slowing growth and inflate short-term earnings. While the broader market has largely ignored these warnings, Burry maintains that the reliance on circular financing and excessive stock-based compensation will ultimately force a sharp decline in valuations.
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