Michael Burry’s latest bearish calls on artificial intelligence-related stocks are prompting renewed debate over whether the famed investor now exerts a market influence comparable to Warren Buffett’s long-observed ability to move share prices, according to Business Insider.
The Scion Asset Management founder disclosed a series of new short positions last week, including bets against Micron Technology, Nvidia, Applied Materials, Tesla, Caterpillar and the iShares Semiconductor ETF (SOXX), arguing that valuations across parts of the AI ecosystem have become detached from fundamentals.
Several of the targeted stocks declined sharply following Burry’s public disclosures, leading some market participants to suggest the emergence of a “Burry effect” similar to the so-called “Buffett effect”, whereby investors closely track the investment decisions of high-profile managers.
Burry has rejected the idea that his comments alone move markets, maintaining that broader factors including earnings expectations, monetary policy and investor positioning ultimately drive valuations. Nevertheless, his track record — most notably his successful bet against the US housing market ahead of the 2008 financial crisis — continues to give weight to his contrarian views.
The investor has become increasingly vocal in recent months about what he sees as excessive optimism surrounding AI infrastructure spending. His latest short positions follow repeated warnings that surging capital expenditure by hyperscalers and semiconductor manufacturers risks creating oversupply and compressing future returns.
Burry’s concerns come as investors debate whether the AI trade is entering a new phase. Semiconductor and memory stocks have substantially outperformed the largest technology platforms in 2026, reflecting growing questions over whether the pace of AI investment can continue to generate sufficient returns for the sector’s biggest spenders.
While some analysts believe the divergence represents a natural evolution of the AI investment cycle, others see parallels with previous technology bubbles. Burry has consistently argued that current valuations resemble periods of speculative excess, positioning his portfolio accordingly.
