There Might Not Be a Spectacular Bursting of an AI Bubble—Here’s What May Happen Instead

Core Viewpoint - Michael Burry's bearish stance on major AI stocks like Nvidia suggests potential market corrections, but the overall AI revolution may still yield high returns if monetization improves [1][2]. Group 1: Market Sentiment and Predictions - The AI sector may experience rolling corrections rather than a sudden crash, with certain stocks like Palantir facing more significant declines while larger tech companies like Alphabet may remain resilient [3]. - The stock of Alphabet is viewed as a potential safe haven for investors looking to rotate profits from high-performing stocks like Nvidia, which has shown slowed momentum [4]. Group 2: Performance Metrics - Oracle experienced a significant decline of 45% from peak to trough, contrasting with Google's performance following the launch of its Gemini 3.0 [5]. - The equal-weight S&P 500 index saw a nearly 10% gain in 2025, indicating a broadening market strength beyond just AI leaders [5].