Michael Burry Thinks the AI Bubble Will Burst Sooner Than Later, Including Big Drops in Micron and Nebius by Mid-2027
Here's why those companies could be among the first to experience the pain of the AI bubble popping.
Overview
Michael Burry rose to fame by spotting the subprime mortgage bubble in the housing market before anyone else and putting his (and his investors') money where his mouth was. While it took some time for his investment thesis to play out, he ultimately made hundreds of millions of dollars from the "big short."
Now he sees another bubble stretching to the breaking point, and he doesn't think it will take much longer for the market to realize he's right. Burry has taken short positions in many of the most popular artificial intelligence (AI) stocks. And at the end of September, he repositioned his portfolio based on a shorter timeline before the AI bubble bursts.
Details
"As such, I want more leverage in my short positions. Better timelines make leverage more palatable." He covered short positions in some stocks, instead buying put options at relatively low strike prices. Those include puts for Micron (NASDAQ: MU) and Nebius (NASDAQ: NBIS) that expire in June 2027, suggesting he foresees big drops in those stocks happening within the next few quarters.
Source
Originally published at www.fool.com.