Business Insider·2026-01-13 14:19Core Viewpoint - Michael Burry is betting against Nvidia due to its vulnerability to a potential downturn in the AI boom, considering it a "pure play" in the sector [1][2] Nvidia's Market Position - Nvidia is projected to sell $400 billion worth of chips this year, while there are less than $100 billion in application layer use cases [2] - The company's stock price has surged 12-fold since the beginning of 2023, making it the world's most valuable public company with a market capitalization of $4.5 trillion [6] Comparison with Other Tech Giants - Burry believes that shorting companies like Meta, Alphabet, and Microsoft would involve betting against their overall dominance in social media, search, and productivity software, respectively [7][8] - These companies are not seen as "pure shorts on AI" and are expected to adjust their spending and asset valuations without losing their global dominance [8] Concerns about AI and Technology - Burry expressed concerns about the potential for technological obsolescence in Nvidia's products, suggesting that the company introduces new chip solutions too frequently [10] - He highlighted the risks associated with AI stocks, drawing parallels between the current AI boom and historical technological bubbles, such as the electricity and data transmission bubbles [11][12][13] Broader Industry Implications - Burry warned of an inventory problem in the AI buildout due to the current power generation setup, suggesting that the industry may face significant challenges ahead [14]