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Veteran investor flags risks of excessive optimism in artificial intelligence
Michael Burry warned that soaring valuations and heavy capital concentration in artificial intelligence could resemble dot-com era excesses, prompting investors to reassess fundamentals, profitability timelines and downside risks in AI-related equities.
Michael Burry, known for predicting the 2008 financial crisis, has cautioned investors about growing exuberance around artificial intelligence stocks. He compared current valuations and capital flows to conditions seen during the dot-com era. Burry highlighted concentration risks, heavy spending without clear profitability and crowded positioning, urging market participants to assess fundamentals carefully amid rapid adoption and rising expectations across AI-linked sectors.