Michael Burry warns of bubble signs, advises cutting tech exposure
Michael Burry warns of AI tech bubble fueled by accounting tricks and overbuilt infrastructure, advising investors to cut tech exposure.Summary
Michael Burry, famous for his 2008 housing market bet, is now warning about a potential bubble in Big Tech stocks, particularly those driven by AI. He believes the current rally is artificially inflated by aggressive accounting practices, such as extending the depreciation lifespans of AI servers, which he estimates could understate collective depreciation by $176 billion between 2026 and 2028, boosting profits by about 20%. Burry draws a parallel to Cisco Systems during the dot-com bubble, highlighting the risks of overbuilding infrastructure without sufficient demand. He anticipates potential price drops of 40% to 50% for major Big Tech stocks as market conditions change. While he has made bets against AI stocks, Burry is not explicitly advising others to short them, acknowledging that the rally could continue in the short term despite weak fundamentals.
(Source：Crypto Briefing)