Quick overview

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Michael Burry, the founder of Scion Asset Management and the investor who famously predicted the 2008 housing crash (depicted in The Big Short), has once again raised alarms about a potential bubble forming in financial markets.

Burry argues that the current equity rally — driven largely by enthusiasm around artificial intelligence — is showing similarities to the late stages of the dot-com bubble in the late 1990s.

In a recent statement, he said the market has “jumped the shark,” suggesting that prices have entered an irrational phase disconnected from fundamentals such as employment or consumer confidence. Instead, he described the market as continuing to rise simply because it has been rising.

AI-driven euphoria under scrutiny

The investor emphasized that today’s market narrative is increasingly concentrated around what he called a “two-letter thesis,” referring to AI. According to Burry, the current environment feels similar to the final months of the 1999–2000 tech bubble.

His comments come amid a powerful rally in technology stocks, particularly companies tied to semiconductors and artificial intelligence. The Philadelphia Semiconductor Index, for example, has posted one of its fastest gains since March 2000 — just before the dot-com crash.

Burry also suggested that today’s moves in the Nasdaq can be “more extreme” than those seen during the late-1990s tech boom, based on data compiled by Yahoo Finance.

Bearish bets against tech and semiconductors

The Scion Asset Management founder has reportedly disclosed bearish positions against several technology companies and semiconductor-related ETFs. These trades target firms tied to the AI investment boom, echoing the contrarian positioning he famously adopted ahead of the 2008 financial crisis.

His warnings add to a growing debate on Wall Street about whether the rapid rise in AI-linked equities reflects a sustainable structural shift — or the early stages of another speculative bubble.