00:00 Speaker A
The AI trade remains a market favorite, powering stocks to new highs. But there is one big name on Wall Street that is throwing cold water on it. Michael Burry, an American investor and hedge fund manager, is making clear his skepticism over the AI boom. And when Burry speaks, investors listen.
00:20 Speaker A
But why is that? Well, let’s take a trip down memory lane. The year is 2008 and the housing market went bust, starting the US financial crisis. But that very crash earned Michael Burry $100 million and over 700 million for his investors.
00:34 Speaker A
How did he pull that off? Well, it was all thanks to Burry’s bet against the US housing market and correctly predicting the subprime mortgage crisis. That call cemented his reputation as one of the most influential contrarian investors. So much so, it was worth making it into a film known as The Big Short, where Christian Bale took up the role in portraying Burry’s unique disposition.
00:54 Speaker B
Home prices are soaring, that means the homes are debt, not assets.
00:57 Speaker C
So Mike Burry, a guy who gets his haircut at supercuts and doesn’t wear shoes, knows more than Alan Greenspan and Hank Paulson.
01:04 Speaker B
You’re a doctor, Mike Burry. Yes, he does.
01:07 Speaker A
Now fast forward to present day. In late 2025, Burry’s form disclosed major bearish positions against Nvidia and Palantir, two of the most prominent AI-linked stocks. He disclosed put options with a notional value of about 187 million against Nvidia and 912 million against Palantir.
01:23 Speaker A
But that’s not all. Burry has also been very active on social media, making posts suggesting that sometimes the only winning move is not to play when markets are frothy, further underlying his caution toward the AI rally.
01:34 Speaker A
Now artificial intelligence is still in the early innings, but we’ll be watching if the AI trade in the end will prove its worth or if the big short investor strikes once again.