‘The Big Short’ investor Michael Burry Monday said investors often misunderstand bearish market views after an analyst questioned whether artificial intelligence bears understood the technology.
Bears Are Misunderstood
Burry was responding to technology analyst Ben Bajarin, who said in a post on X that he had yet to find someone bearish on AI who also understood how the technology was being deployed across leading enterprises and delivering value at scale.
“There are those to talk to enterprises and then there are arm chair bears,” Bajarin added.
Burry replied that most people misunderstood how bearish investors approach markets.
“This is how most people misunderstand bears,” Burry said.
‘Bears Think in Six’
He highlighted his own experience using the internet from its earliest days, launching his business through a website in 1996 and becoming one of Amazon.com Inc‘s (NASDAQ:AMZN) early resellers before publicly warning about the dot-com bubble and shorting the company.
“Most people think in three dimensions or less. Bears think in six,” he added.
Burry’s Latest AI Bets
Burry’s comments come less than a week after he disclosed fresh bearish positions against NVIDIA Corp (NASDAQ:NVDA), Tesla Inc (NASDAQ:TSLA) and the iShares Semiconductor ETF (NASDAQ:SOXX).
He has since expanded those bearish bets to include Micron Technology Inc (NASDAQ:MU), calling the AI memory chipmaker a structural “destroyer of capital”.
He also criticized financing structures supporting AI infrastructure spending, while maintaining that his concerns centered on valuations rather than the underlying technology.
In a May Substack post, Burry identified Adobe Inc (NASDAQ:ADBE), Intuit Inc (NASDAQ:INTU) and Autodesk Inc (NASDAQ:ADSK) among the software companies he believes are better positioned for the AI era, while taking a more cautious view of DocuSign Inc (NASDAQ:DOCU).
AI Valuations Remain a Debate on Wall Street
Burry is not alone in separating AI’s long-term potential from current market valuations.
Billionaire investor Jeremy Grantham described AI as transformative while warning that today’s AI leaders could face a correction similar to the dot-com era.
The debate comes as investors have continued rewarding AI infrastructure suppliers such as Micron, SanDisk Corp (NASDAQ:SNDK) and Intel Corp (NASDAQ:INTC), while taking a more cautious approach toward hyperscalers as they assess when record AI spending will begin generating stronger financial returns.
Benzinga edge rankings indicate NVDA has a Momentum score in the 57th percentile and a Growth score in the 98th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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