Big Short trader Michael Burry’s rising bearish AI positions test China’s stock support

Hedge fund manager Michael Burry increased bearish wagers on AI-linked stocks including Nvidia and Micron Technology, testing Beijing's stock market support as Moody's warned of debt risks from hyperscalers. Burry said in a Substack post that much of current and future AI demand is not driven by end customers but is financed in a circular arrangement.

Big Short trader Michael Burry’s rising bearish AI positions test China’s stock support Burry’s increasing bearish wagers put pressure on Beijing’s stock market intervention as Moody’s flags mounting debt risks Zhang Shidong /author/zhang-shidong in Shanghai state support for its stock markets https://www.scmp.com/business/china-business/article/3361342/can-beijings-stock-support-deliver-long-bull-run-and-fuel-its-high-stakes-tech-drive?module=inline&pgtype=article may face a test, as seasoned US hedge fund manager Michael Burry increased bearish wagers on artificial intelligence-linked stocks and Moody’s warned of debt risks from hyperscalers https://www.scmp.com/business/china-business/article/3356074/ai-hyperscaler-effect-vaults-chinas-zhongji-innolight-top-csi-300-benchmark?module=inline&pgtype=article . Nvidia https://www.scmp.com/news/us/diplomacy/article/3361813/nvidia-palantir-meta-warn-against-premature-restrictions-open-weight-models?module=inline&pgtype=article , Micron Technology and an exchange-traded fund tracking the Philadelphia Semiconductor Index. Moody’s cautioned last week that heavy capital spending was eroding cash flows at US hyperscalers including Microsoft and Amazon.com. global AI trade https://www.scmp.com/business/china-business/article/3361544/chinas-star-fund-manager-dumps-long-held-consumer-bets-pivot-ai-trade?module=inline&pgtype=article and may counter Beijing’s efforts to shore up onshore equities with direct state buying. The global AI trade, alongside a bull run on Chinese technology stocks, has faltered amid doubts over whether data-centre and cloud spending will translate into real cash flows and justify stretched equity valuations. “I believe much of current and future demand is not driven by end customers, end demand,” said Burry in a post on Substack. The high-profile investor was featured prominently in the 2010 nonfiction book The Big Short , as well as its 2015 film adaptation. “Much and possibly most is financed, off-balance sheet and not lit. Future revenues are majority financed in a circular arrangement, per the 2026 BIS Bank for International Settlements annual report.”