Michael Burry's Back to Short Something? Who Cares...

Michael Burry's AI Bubble Warning: Smart Take or Just Another Doomsayer Rant?

Burry's Back... Again

So, Michael Burry—the guy who made a killing betting against the housing market back in '08—is back on his soapbox. This time, he's waving the red flag about an AI bubble. And, offcourse, he's doing it in the most Michael Burry way possible: cryptic tweets, movie references, and massive put options.

The dude's been buying up put options on Palantir and Nvidia. For those not fluent in Wall Street jargon, that basically means he's betting these companies' stock prices are gonna tank. Palantir, the darling of the data-mining world, and Nvidia, the poster child for the AI hardware revolution. Bold move, Cotton. Michael Burry Is Super-Bearish On Palantir — With 5 Million Puts - Palantir Technologies (NASDAQ:PLTR)

He even dusted off his X account (formerly Twitter, may it rest in peace) to post a "Star Wars" meme. "These aren't the charts you are looking for," he wrote, implying we're all being hoodwinked by some kind of Jedi mind trick when it comes to AI hype. Real subtle, Mike.

Is He Seeing Something We're Not?

Burry's not exactly known for being Mr. Sunshine. He's been predicting market crashes and recessions for years. Remember when he called crypto the "mother of all bubbles"? Or when he told everyone to "Sell" back in early 2023? He's basically the financial world's version of that one uncle who always ruins Thanksgiving dinner with his conspiracy theories.

But here's the thing: sometimes, the crazy uncle is right.

Burry's pointing to charts showing AI capex mirroring the tech spending of the late '90s tech bubble. He's highlighting the tangled web of AI deals between Nvidia, OpenAI, Oracle, and other Big Tech players. He's basically saying, "Wake up, sheeple! This is all a house of cards!"

And, let's be real, there is a lot of hype around AI right now. Every company is slapping "AI-powered" on their products, whether it makes sense or not. Are we really on the verge of a technological singularity, or is this just another overblown tech fad that's gonna leave a lot of investors holding the bag?

I gotta ask: What's driving this frenzy? Is it genuine innovation, or just fear of missing out? And who really benefits from all this AI mania?

Or Is He Just a Broken Clock?

Of course, Burry's also been wrong before. Elon Musk famously called him a "broken clock" after Burry bet against Tesla. And, to be fair, Burry did lighten up on his bearish bets earlier this year, swapping puts for calls. So, maybe he's just trying to stay relevant by making sensational predictions.

Plus, let's consider the source. This is a guy who changed his profile name to "Cassandra Unchained," a reference to the Greek priestess cursed to make accurate prophecies that no one would believe. Talk about a victim complex.

Maybe I'm just being cynical. Maybe AI really is the future, and Burry's just an old man yelling at a cloud. Then again, maybe I'm the crazy one here...

I dunno. Part of me thinks he's got a point. But another part of me thinks he's just enjoying the attention. The guy's basically monetizing his own pessimism at this point.

Another Day, Another Doomsday Prediction