Michael Burry maintains bearish bets on AI stocks despite S&P 500 reaching record highs
Michael Burry remains a skeptic of the current artificial intelligence boom, maintaining bearish positions on major tech stocks even as the S&P 500 reached a record high. While the market has surged due to strong corporate earnings and falling oil prices, Burry warned that the current rally could lead to a sharp sell-off similar to the 1987 stock market crash. Burry highlighted that while companies like Nvidia, Palantir, and Caterpillar are currently performing well, the excessive investment in AI infrastructure may be unsustainable. He compared the current AI gold rush to the late-1990s telecom buildout, suggesting that today's high demand could eventually result in underused capacity. He continues to hold short positions in several key companies, including Nvidia, Palantir, and Caterpillar, though he noted he would cut his losses if the trades moved decisively against him. Despite the market's optimism, Burry remains confident in his long-term bearish outlook for these specific positions.