Investors are once again focusing on Michael Burry, the figure\nrenowned for predicting the 2008 global financial crisis. This time, he\nhas issued a warning that the explosion of investment in artificial\nintelligence (AI) has the potential to turn into a bubble that could\nburst sooner than previously anticipated.<\/p>\n
Citing CNBC International on Monday (28\/09\/2026), Burry stated that\nhe has accelerated his timeline regarding risks in the AI sector. The\ninvestor, known for his massive bets against the United States property\nmarket before the 2008 crisis, is now altering his investment strategy\nregarding several AI-related stocks.<\/p>\n
Burry mentioned that he has begun shifting from short selling\npositions to using put options on several technology stocks. This\nstrategy provides opportunities for profit should share prices decline\nwithin a specific period.<\/p>\n
\u201cIn terms of fundamentals, I am accelerating my timeline,\u201d Burry\nwrote in his investment newsletter. \u201cThe AI bubble may burst sooner than\nexpected.\u201d<\/p>\n
Burry also revealed that while some changes in investment positions\nwere made for tax reasons, the majority were driven by his belief that\nthe valuations of several AI companies have relied too heavily on high\ngrowth expectations.<\/p>\n
He has increased his put option positions on several companies,\nincluding chip manufacturer Micron Technology, AI infrastructure firm\nNebius, and the iShares Semiconductor ETF (SOXX). He also updated his\nposition regarding the data analytics software company Palantir\nTechnologies.<\/p>\n
Will AI spending cease? In his view, Burry cited research from the\ninvestment firm Ares Management, which warns that the AI industry\ncurrently relies heavily on the assumption of continuously increasing\ncapital expenditure. According to the report, problems could arise if\nrevenue from AI technology fails to meet the expectations of the massive\ninvestments companies have poured into the sector.<\/p>\n
Burry believes that if companies begin to doubt the potential\nprofitability of AI investments, several boards of directors may change\ntheir strategies and reduce large-scale spending in the sector. This\nperspective emerges while technology stocks remain one of the primary\ndrivers of the US stock market\u2019s gains.<\/p>\n
Who is Michael Burry? The name Michael Burry became widely known\nafter his story was featured in the film \u201cThe Big Short.\u201d This tells the\nstory of how he bet against the US housing market before the 2007-2009\nfinancial crisis.<\/p>\n
At that time, Burry identified many high-risk subprime mortgages that\nwere overvalued by the market. He subsequently took a position contrary\nto the majority of investors and secured massive profits when the\nproperty bubble finally burst.<\/p>\n
Now, Burry is once again taking a position against the market\nmainstream. He previously compared current stock market conditions to\nthe period leading up to the bursting of the technology bubble in\n1999-2000.<\/p>\n
Nevertheless, technology stocks continue to record gains, and the\nNasdaq Composite index recently reached new records. Several stocks\ntargeted by Burry\u2019s bets are still below their peak levels, including\nMicron, which is down approximately 16% from its record price, and\nPalantir, which is down about 10% from its highest level.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/2008-crisis-predictor-warns-of-potential-bubble-suggesting-certain-investments-could-collapse-1790689958", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }