Michael Burry is warning of an AI bubble, pointing to a chart showing U.S. capex-to-GDP ratios hitting levels last seen before the dot-com and housing crashes. He says tech capex is rising at double-digit rates while AI stocks sit near record highs, a pattern where markets peak before spending does. His Lord of the Rings meme mocks investor complacency. Burry has reportedly taken large put positions against Nvidia and Palantir and even deregistered Scion, signaling he expects inflated AI valuations, excess capacity, and margin risks to trigger a correction.
