‘Big Short’ investor Michael Burry warns Nvidia is the Cisco equivalent in today’s AI boom: ‘Sometimes the new company is the same company on a pivot’

Core Viewpoint - Michael Burry expresses concerns about an AI bubble, drawing parallels between the current AI boom and the late-'90s dotcom crash, specifically highlighting Nvidia as a key player in this potential bubble [1][4]. Group 1: AI Boom and Comparisons - Burry describes the AI boom as a "glorious folly," similar to the dotcom era, where companies are innovating themselves to potential failure [2]. - He identifies five major companies in the current AI landscape, likening them to the "Four Horsemen" of the dotcom boom: Microsoft, Google, Meta, Amazon, and Oracle [2]. Group 2: Historical Context - Cisco is noted as a pivotal company during the dotcom bubble, with its stock soaring 3,800% from 1995 to 2000, only to collapse by over 80% afterward [3]. - Burry suggests that Nvidia is the modern equivalent of Cisco, positioned at the center of the current AI boom with significant market influence [4]. Group 3: Market Valuation Concerns - Nvidia has reached a market valuation of approximately $5 trillion, raising alarms about a potential "Cisco moment" in the next 24 months, as noted by Morgan Stanley's chief investment officer [5]. - Burry's hedge fund, Scion Asset Management, has taken a bearish position on Nvidia and Palantir, purchasing over $1 billion in put options, indicating skepticism about their future performance [4].