Benzinga·2025-11-04 06:20Core Viewpoint - Michael Burry warns that the current AI boom resembles a speculative bubble similar to the 2000 dot-com bust, indicating potential overvaluation in AI-centric stocks [1][2]. Group 1: Investment Actions - Scion Asset Management, led by Burry, has taken a bearish stance by acquiring over $1 billion in put options against AI-focused companies like Nvidia and Palantir [2]. - Burry's investment strategy reflects a belief that the AI market may be overhyped and unsustainable [2]. Group 2: Market Comparisons - Burry draws parallels between the current AI infrastructure investments and the telecom bubble of 2000, highlighting that less than 5% of US telecom capacity was utilized during that period, leading to significant market collapse [3]. - The massive capital expenditures on AI infrastructure, such as Nvidia GPUs and cloud data centers, are compared to "unlit" fiber-optic cables that contributed to the telecom market's downfall [3]. Group 3: Data Insights - A chart presented by Burry indicates that U.S. tech capital expenditure growth is matching levels seen during the tech bubble of 1999-2000, suggesting a potential risk of overinvestment [4]. - In contrast, another chart shows a decline in year-over-year cloud growth for major companies like Amazon, Alphabet, and Microsoft, indicating a disconnect between capital expenditure and actual market demand [4]. - A third chart illustrates a complex web of investments among major tech players, suggesting a self-reinforcing cycle rather than genuine demand for AI technologies [5].