Michael Burry bets against AI-linked stocks

Investor Michael Burry, known for predicting the 2008 financial crisis, is once again betting against the stock market, specifically targeting companies linked to the artificial intelligence boom.

Burry has taken short positions in several major entities, including Nebius, Oracle, Nvidia, Tesla, and Palantir. He has expressed skepticism regarding the long-term sustainability of massive AI investments and the high costs associated with purchasing and leasing computing chips. Regarding Nebius, Burry specifically criticized the company's decision to change its server depreciation schedule from four to five years to improve reported profits.

However, Burry's recent timing has faced challenges. Following his short position on Nebius, the company reported second-quarter results that significantly exceeded expectations, with revenues rising 454% to $582 million. This caused Nebius shares to surge by 34% in a single trading day, moving 22% above Burry's entry point.

Burry also noted that the current lack of broad selling waves on Wall Street—the longest period of such calm in at least 30 years—is a suspicious signal that may precede a market downturn.