From my perspective, Michael Burry raises valid concerns, but I don't fully subscribe to his extremely bearish stance. Yes, the AI sector has seen massive capital inflows, and valuations—especially for names like Nvidia $NVIDIA(NVDA)$
At the same time, I acknowledge that parts of the AI market are clearly priced for perfection. Nvidia's valuation assumes multi-year uninterrupted dominance, and Palantir's premium hinges on the belief that its government AI contracts can scale rapidly into the commercial world. These assumptions may hold, but they leave very little room for execution hiccups. So while I'm bullish on the long-term trajectory of AI, I'm also cautious about chasing parabolic moves without regard to fundamentals.
For me, the comparison to the dot-com bubble isn't completely accurate. The technology foundations today—cloud infrastructure, GPUs/TPUs, AI-native software, and real-world use cases—are far more mature. Companies aren't just promising future adoption; they're already monetizing AI deployments across defense, healthcare, logistics, and productivity. That's a big difference from the late 1990s, when most firms had revenue models built on hope rather than actual usage.
Overall, I see value in both sides of the argument. Burry's warnings are a good reminder to stay disciplined and avoid treating AI as an automatic, one-way bet. But I also believe the structural demand for AI is strong enough that leaders like Nvidia and Palantir can keep compounding—just maybe not at the unrealistic pace some investors assume. I prefer maintaining a long-term bullish view, while managing position sizes carefully and staying alert to valuation excesses.
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