What happens when the man behind The Big Short thinks tech’s AI rocket ship is overheating? Markets listen. According to BBC News, hedge fund investor Michael Burry has wagered $1.1bn on a fall in shares of AI favorites Nvidia and Palantir, just as tech stocks stumbled across the globe.
Japan’s Nikkei closed down 2.5%, weighed by a drop of more than 10% in SoftBank. In the US, Amazon slipped 1.84% and Nvidia, recently the first company to hit a $5tn valuation, fell nearly 4%. South Korea’s Samsung shed over 4%, the Kospi declined 2.85%, and TSMC dipped almost 3%.
Why this matters now: the story is not that AI is over. It is that the price tags on some AI linked companies may have gotten ahead of reality. After a year of breathtaking gains and blockbuster AI investments, investors are pausing to ask whether earnings can keep up with the excitement.
As financial analyst Farhan Badami noted, fatigue over AI and the recent earnings run has investors questioning whether the hype is sustainable. That shift in mood can translate into sharper pullbacks, especially after steep rallies. SoftBank’s slump is a reminder that stocks benefiting most from the AI boom can also be the most vulnerable on down days.
For women over 35 who are focused on long term goals, this bout of turbulence is a smart moment to take stock of risk, not a reason to panic. If your portfolio rode the AI wave, consider whether it is balanced for the next chapter, where companies will need to show profits that match their AI spending.
Even as headlines highlight dips, the broader AI trend remains powerful. Think of this as the market asking for proof, not calling off the future.
Here is the human twist. Burry, famously cautious on bubbles, posted this on X: Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play. Whether you agree or not, it is a useful cue to review exposure, stress test your plan, and stay disciplined.
Curious what is behind the moves, the numbers, and the bigger AI story? Read the full BBC report for context and detail: Trader who inspired The Big Short bets against AI as tech shares fall.
