Is Michael Burry Wrong About Everything?

Is Michael Burry Wrong About Everything?

Douglas A. McIntyre

Thu, August 6, 2026 at 6:16 PM GMT+3 3 min read

Quick Read

• Burry warns of a potential 1987-style market crash, arguing AI-driven gains are creating dangerous leverage among bulls.

• Burry claims profits shorting PLTR and others, but his NVDA short hasn't paid off and PLTR has since surged 22%.

• Burry has never publicly closed his current short positions, making his claimed gains impossible to independently verify.

• Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Michael Burry is extremely famous for predicting the housing crisis in 2008. As the economy fell apart, his pessimistic bet made him an oracle in the eyes of the financial industry and many people outside the sector. He is still remembered for that decision today.

Burry has morphed into one of the world's biggest skeptics about the current market runup and the frenzy over AI that has caused almost all of it. To make his point, he wrote, "It is possible we are near a major top, and possible a 1987-type fall, but the S&P 500 making new highs likely will bring new money into the market." He worried that as the market surges, it creates more leverage for the people who believe it will never stop rising.

Burry's concerns about AI are based to some extent on the round-trip financing that has come under fire. Nvidia (NASDAQ: NVDA), for instance, invested money into OpenAI. OpenAI uses the money to buy Nvidia chips. This type of deal has proliferated in the last several months.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Make no mistake, Burry has made money on his bets against AI. Or, at least he says so. Recently, he said he profited on short positions in Palantir (NASDAQ: PLTR), Micron, Tesla (NASDAQ: TSLA), Caterpillar (NYSE: CAT), Applied Materials (NASDAQ: AMAT), and the iShares Semiconductor ETF. His bet against Nvidia has not yielded a profit. However, he neglected to mention that people make money on investments based on the date they buy and the date they sell. Burry's track record is good because he says so. How long can he short without these investment decisions backfiring? AI stocks were out of vogue two months ago. For example, Palantir's stock collapsed in late June compared to the start of the year. It is up 22% in the last month because they announced blowout earnings.

Burry made money in 2008 because he opened a position and eventually closed it. Today, he needs to do that every time he makes an investment decision so that people can see. Over time, is there any chance he will make money on a bet like Palantir? Is there any guarantee he will make money on his other short decisions?

Burry could be wrong. He hasn't said.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

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