Michael Burry Says AI Stock Boom Looks Like Final Stretch of Dot-Com Bubble

Overview

• Burry, who posted the warning Friday, said the tech-led surge now feels like the last months before the 2000 bust and warned the Nasdaq 100 could face a complete reversal.
• He urged investors to cut exposure to high-flying technology names and to hold more cash, adding that shorting is costly and poorly timed for most people right now.
• As evidence, he cited parabolic chip gains with the semiconductor index up about 65% this year and stretched metrics such as the Shiller CAPE near 40, a level last seen at the dot-com peak.
• Burry said he holds a significant leveraged short against a basket of what he views as cheap companies, while separate reports say he bought January 2027 put options tied to the semiconductor ETF, which has not been confirmed by him.
• Markets keep setting records as debate grows, with Paul Tudor Jones noting 1999 parallels yet suggesting the rally could run another year or two, a split that leaves investors weighing near-term gains against the risk of a sharp drawdown.