At a Glance
Michael Burry says the market is in the “denial” stage of a crash.
He expects this phase to last 6–9 months, based on 2000 and 2008.
The S&P 500 hit a record 7,830 on Oct. 6.
Burry is betting against Nvidia, Palantir and Micron.
He argues AI spending could expose $3 trillion in commitments.
The Warning Behind Wall Street’s Record Highs
Michael Burry, the investor made famous by The Big Short, is doubling down on his bearish view of U.S. stocks.
“The stock market is quite obviously in its first stage of grief, denial,” Burry wrote on X. Based on the 2000 and 2008 market cycles, he said this stage could last 6–9 months, pointing to potential turmoil in the first or second quarter of 2027.
Record Highs Meet a Bearish Bet
The warning comes as markets continue climbing. The S&P 500 reached 7,830 on Oct. 6 after rising 0.7%, marking another record high.
Burry has moved his bearish bets toward puts on Nvidia, Palantir and Micron, with contracts expiring at different points next year. He also said he wants more leverage in his short positions as his expected timeline moves closer.
Why It Matters
Burry sees the AI boom as a potential weak spot. He argues chip upgrades could outpace the useful life of costly data-center infrastructure, creating unexpected costs for hyperscalers.
Another concern: hyperscalers have $3 trillion in financial commitments tied to AI hardware that are not yet reflected on their balance sheets.
Steve Eisman, another Big Short investor, disagrees, arguing strong AI demand could keep older chips useful.
What to Watch Next
For traders, the key question is whether record highs can survive rising borrowing costs, inflation pressure, and the enormous spending behind the AI boom.
Every headline is an opportunity — don't watch it from the sidelines. Trade it live on TradeQuo.
Source: Yahoo Finance
Time: 12 PM EEST
