AI Market Volatility Intensifies as Michael Burry Escalates Public Campaign Against NVIDIA

The artificial intelligence investment landscape is facing rising turbulence as Michael Burry, the investor known for predicting the 2008 financial crisis, has launched an aggressive and highly public critique of Nvidia, the world’s most valuable AI hardware company. Burry, now operating without SEC communication constraints after deregistering his firm, has used his rapidly growing Substack audience to argue that the AI sector is exhibiting signs of overbuilding and inflated expectations reminiscent of past technology bubbles.

Burry has disclosed large bearish positions against Nvidia and Palantir and has criticized stock-based compensation, customer demand dynamics, and accounting assumptions tied to GPU depreciation. Nvidia has challenged his assertions in a memo to analysts, defending its financial practices and rejecting comparisons to historical corporate failures.

The clash comes as Nvidia’s valuation has surged to $4.5 trillion amid accelerating AI investment. Supporters note Burry’s mixed track record since 2008, while critics warn that his platform could influence market sentiment and trigger broader skepticism toward AI infrastructure spending. With Burry’s new newsletter amassing tens of thousands of subscribers in days, the debate underscores growing unease over whether the AI boom reflects durable innovation or a potential market bubble primed for correction.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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