Fearless girl in front of bull on Wall Street by Daniel Lloyd Blunk-Fernandez via Unsplash
Michael Burry is back.
The investor who famously predicted the 2008 housing crash is once again making headlines — this time for taking a bearish position against the biggest names in artificial intelligence (AI), including Nvidia (NVDA) and Palantir (PLTR).
Burry has warned that today’s AI boom may resemble the Global Financial Crisis, pointing to what he believes are early signs of excess, aggressive assumptions, and accounting choices that could distort the true economics of the industry.
But as markets push further into 2026, the bigger question isn’t whether Burry is wrong. It’s whether he’s early… or looking at the wrong data entirely.
Burry’s Core Concern: The “Depreciation Shift”
At the center of Burry’s argument is a subtle but important change happening across Big Tech.
Companies like Microsoft (MSFT), Google (GOOG) (GOOGL), and Meta (META) have begun extending the useful life of their AI infrastructure, particularly GPUs and data center equipment. On paper, this lowers near-term costs by spreading expenses over a longer period of time — boosting reported earnings.
To skeptics like Burry, that raises a red flag.
The concern is simple: If AI hardware becomes obsolete faster than expected, companies may eventually be forced to write down billions in assets — creating a sharp disconnect between reported profits and economic reality.
It’s a classic late-cycle fear: Are companies optimizing earnings… or masking future problems?
The Other Side: AI Demand Isn’t Slowing; It’s Accelerating
While Burry focuses on accounting signals, the market has been responding to something else entirely: Demand.
Companies across industries are rapidly integrating AI into their operations — from enterprise software to cloud infrastructure to consumer platforms. And that demand is translating into real revenue growth.
Nvidia’s data center business has become the backbone of the AI economy, with demand for compute power continuing to outpace supply. At the same time, hyperscalers are committing tens of billions in capital expenditures — not pulling back.
That doesn’t look like a bubble unwinding. It looks like a global infrastructure buildout.
The “Inverse Burry” Watchlist
If Burry is betting against the infrastructure, some investors are looking at the companies already turning AI into revenue.
Here are three names often cited in that conversation:
#1. Microsoft: Monetizing AI at Scale
Microsoft isn’t just building AI; it’s selling it.
Through Azure and enterprise integrations, the company is embedding AI directly into business workflows, from productivity tools to cloud services.
That makes it one of the clearest examples of AI moving from cost center to profit driver.
#2. Iren (IREN): The Infrastructure Play
While most of the focus is on software, companies like IREN operate the physical backbone of the AI economy. Data centers, power access, and compute infrastructure are becoming some of the most valuable assets in the market.
In a world driven by AI demand, owning the infrastructure can be just as important as owning the models.
#3. Salesforce (CRM): AI in the Real Economy
Salesforce is one of the first companies showing how AI can directly reduce costs and improve efficiency.
By automating customer service and enterprise workflows, platforms like Agentforce highlight something critical: AI isn’t just theoretical — it’s already impacting margins.
Investor Takeaway
Michael Burry has built his reputation on identifying cracks in structural narratives before the market sees them. But not every cycle plays out the same way.
Today’s AI boom isn’t just a narrative. It’s backed by massive capital investment, rising adoption, and measurable productivity gains across industries.
That doesn’t mean there’s no risk. But it does mean the story is more complex than a simple bubble call.
Because if Burry is betting against AI infrastructure… The market, so far, is betting on its inevitability.
On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
