Known Investor Michael Burry has warned that about the stock market grow to fix artificial intelligence is beginning to resemble the late 1990s The dot-com bubble.
In the Substack postBurry denied that finances markets are no longer reacting wisely to key economic indicators such as employment data and consumer sentiment.
Instead, he said the business interest surrounding AI-related companies is driving the prices higher.
The warning comes as major US indexes continue to rise despite signs of economic uncertainty. For example, on Friday, a The value of the S&P500 closed at a record 7,398 after investors focused on a stronger-than-expected April jobs report.
“Products don’t go up or down because of consumer activity or sentiment. <...> They are going straight because they have been going straight. On two notes that everyone thinks they understand.
Burry, who is best known for predicting the US housing crash in 2008 The Big Shortcompared to the current rally in AI-linked stocks and the boom in tech stocks that preceded the collapse of the dot-com bubble in March 2000.
He cited the performance of the Philadelphia Semiconductor Index, which has risen more than 10% this week and is now expected to rise 65% in 2026.
AI driving the stock market
Semiconductor manufacturers and major technology companies associated with AI infrastructure will lead the ongoing market as investors continue to pour money into companies that are benefiting from the rapid growth of artificial AI.
Burry also said that stocks are increasing because trends continue to attract more buyers and not because of economic corrections.
According to his analysis, the market’s focus on AI has been so great that other economic and financial activities are receiving little attention from investors.
Overall, the AI boom has brought significant benefits art and semiconductor stocks over the past two years, with investors betting heavily on companies expected to benefit from advances in artificial intelligence.
However, growing comparisons to the Dot-com era are fueling fears that too much optimism and far-fetched valuations could cause markets to overshoot if sentiment weakens.
