Legendary Investor Michael Burry (Trades, Portfolio) intensified his criticism of artificial intelligence-related investments over the weekend, using social media posts to signal increasing concern about the sustainability of the current AI-driven market rally.
Burry suggested that enthusiasm surrounding AI may be becoming detached from underlying fundamentals. In a series of comments, he argued that investor behavior around the sector resembles a broad market obsession and implied that momentum in the trade could weaken over time.
To support his view, Burry referenced market data highlighting the gap between semiconductor performance and other areas tied to artificial intelligence. Research cited in the discussion indicated AI chip companies have outperformed hyperscale cloud firms and broader groups of AI-related businesses.
He also pointed to valuation trends involving the Philadelphia Semiconductor Index and the iShares Semiconductor ETF NASDAQ:SOXX. The data suggested semiconductor shares are trading near the upper end of historical valuation ranges based on forward earnings measures.
Burry has recently disclosed several bearish positions tied to AI-related semiconductor investments.