Does "The Big Short's" Michael Burry Know Something Wall Street Doesn't? He Just Placed Bets Against AI and Sees the "Beginning of the End."

Michael Burry, the investor who called the 2008 financial crisis, has opened short positions against Applied Materials (AMAT), Tesla (TSLA), Caterpillar (CAT), Micron Technology (MU), and the iShares Semiconductor ETF (SMH). The bearish bets target the heart of the AI infrastructure trade, with Burry signaling skepticism that massive capital expenditures will translate into sustained revenue growth.

Burry specifically cited Samsung and SK Hynix's $500 billion chip hub investment as "the beginning of the end" for the AI boom, suggesting the capital cycle has reached an inflection point. His positioning challenges the consensus view that semiconductor demand tied to artificial intelligence workloads will continue expanding at current rates.

The shorts come as chip stocks have rallied on expectations of multi-year AI infrastructure buildouts. Applied Materials manufactures semiconductor equipment, Micron produces memory chips critical for AI servers, and SMH provides broad exposure to the sector. Tesla's inclusion reflects Burry's broader concern about AI-linked valuations, given the company's autonomous driving and robotics ambitions.