Michael Burry Warns Wall Street About Overvalued AI Firms Inflating Profits Through Accounting Adjustments

Investor Michael Burry cautioned that Wall Street is significantly overvaluing AI-focused companies, arguing that certain firms are inflating profitability by adjusting depreciation schedules. Burry noted that these accounting treatments, combined with aggressive growth narratives, have led to valuations detached from underlying fundamentals. His comments add to growing market scepticism about AI-sector sustainability, especially as macroeconomic uncertainty and earnings volatility persist. Analysts suggest that Burry’s warning may prompt investors to reassess exposure to AI-heavy portfolios in the near term.