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Michael Burry Bets Against AI Rally. Is a 1987-Type Crash Coming?
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Subscribe10 AUG 2026 / FINANCE
In August 2026, Michael Burry questioned not only the sustainability of the record-setting stock market but also the underlying infrastructure of the AI investment cycle. Burry believes the escalating AI investment could cause a potential crisis, paralleling the devastating 1987 Black Monday market crash. His concerns highlight potential volatility in AI-focused stocks, suggesting investors may be falsely predicting returns as AI businesses are yet to substantiate their economic value.
Wall Street has a funny habit: when stocks keep setting records, caution starts sounding less intelligent with every green trading screen. That is roughly where Michael Burry finds himself in August 2026. On August 4, the S&P 500 jumped 1.8% to a reco...
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