Michael Burry Says AI Rally Echoes Final Months of 1999 Dot‑Com Bubble

He warns rising 30‑year Treasury yields plus oil near $100 and heavy corporate AI borrowing could force a sharp market repricing.

Overview

Burry renewed his warning in posts he shared publicly on July 23, saying the market’s fixation on AI resembles the momentum-driven buying of late 1999 rather than moves tied to company earnings.
He says investors are ignoring basic economic signals such as jobs and consumer data while chasing a narrow AI narrative that pushes prices up simply because they have been rising.
Burry reported placing bearish trades against some high-profile technology names while also “patiently acquiring” established, fundamentally strong companies that the market is overlooking.
He flagged concrete macro risks that could force selling: the 30‑year U.S. Treasury yield staying above 5% for an extended stretch, Brent crude approaching $100 per barrel, and heavy corporate borrowing to build AI data centers.
Burry cautioned that leveraged strategies in Treasury markets and stretched private equity and private credit structures could amplify volatility, and he acknowledged his record of both successful and failed crash calls.