Michael Burry warns of potential AI market correction

Investor Michael Burry, known for predicting the US mortgage crisis, has expressed concerns regarding a potential crash in the artificial intelligence sector. After reviewing financial statements from major tech companies including Amazon, Meta, Alphabet, Microsoft, and Oracle, Burry argues that investors are underestimating the massive long-term financial commitments required for AI infrastructure, such as chips and data centers.

In contrast to this bearish outlook, the semiconductor industry continues to see rapid growth driven by AI demand. Nvidia reported a 106% revenue increase to $96.2 billion, with data centers accounting for $89 billion of that total. Similarly, Broadcom saw its AI segment revenue reach $16.7 billion, a 221% year-over-year increase. While these companies show strong performance, analysts note that maintaining dominance remains a challenge as large customers begin to fund their own internal alternatives.