The Motley Fool·2025-12-07 23:40Core Viewpoint - Michael Burry has expressed bearish views on artificial intelligence (AI) stocks, particularly targeting Nvidia and Palantir Technologies due to concerns over frothy valuations and questionable accounting practices [1][2][5]. Group 1: Concerns on AI Stocks - Burry's primary concern with AI stocks is their high valuations, with the S&P 500 Shiller CAPE Ratio currently at 40, nearing levels seen before the dot-com bubble burst [5]. - Palantir is highlighted as particularly overvalued, with a price-to-sales (P/S) ratio of 113 and a price-to-earnings (P/E) multiple of 403 [6]. - Burry has raised issues regarding Nvidia's accounting practices, noting that its largest customers are depreciating AI infrastructure over five to six years, which is longer than the actual useful life of GPUs [7][8]. Group 2: Tesla's Valuation - Burry has also criticized Tesla, stating it is "ridiculously overvalued," with a P/S ratio of 16 and an expanding P/E multiple despite declining sales and profitability [12][14]. - The premium valuation of Tesla is attributed to investor optimism regarding its AI ambitions in autonomous driving and humanoid robotics, despite these projects not yet achieving commercial adoption [14][16]. - Burry's negative outlook on the broader AI landscape suggests that Tesla could be his next target for shorting [17].