Which stocks did Burry bet against?

Burry bet against Microsoft (MSFT), Applied Materials (AMAT), a chip ETF, Tesla, and Caterpillar.

Why does Burry think the AI boom is ending?

Burry believes AI stock valuations are too high and unsustainable, leading him to expect a market correction.

Should investors sell AI stocks?

No, Burry's bet is not a sell recommendation. Investors should conduct their own analysis and assess company fundamentals.

Michael Burry Bets Against AI Stocks, Calls It 'Beginning of the End'

Famed investor Michael Burry has disclosed new short bets against Microsoft, Applied Materials, and chip ETFs, calling the AI boom's 'beginning of the end'.

July 1, 2026

2 min read

Source: The Wall Street Journal

Famed investor Michael Burry, known for his successful bet against subprime mortgages in 2008, has disclosed new short positions against Microsoft (MSFT), Applied Materials (AMAT), and a chip ETF. Burry described these bets as the 'beginning of the end' for the artificial intelligence boom.

Details of the Bets

Burry did not reveal the size of the positions or the total value of the trades, but regulatory filings show he took short positions against:

Microsoft (MSFT): The tech giant heavily investing in AI.
Applied Materials (AMAT): A semiconductor equipment company.
A chip ETF: The specific ETF was not named.
Tesla (TSLA): The electric vehicle maker.
Caterpillar (CAT): The heavy equipment manufacturer.

Context

The bets come at a time when AI stocks are trading at high valuations, with Microsoft and Applied Materials shares rising significantly over the past year due to AI demand. Burry believes these valuations are unsustainable.

What It Means for Investors

Burry's bet does not necessarily predict an imminent crash, but it highlights risks in the sector. Investors are advised to assess company fundamentals rather than rely solely on momentum.

Frequently Asked Questions

Michael Burry is an American investor famous for his successful bet against the subprime mortgage market in 2008, depicted in the film The Big Short.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.