Michael Burry Builds Bearish AI Bets as China Tech Rally Faces Valuation Doubts
Updated
Updated · South China Morning Post · Jul 27
Michael Burry Builds Bearish AI Bets as China Tech Rally Faces Valuation Doubts
1 articles · Updated · South China Morning Post · Jul 27
Summary
Michael Burry has increased bearish positions tied to the AI trade, adding pressure to Chinese technology stocks as their recent rally loses momentum.
Moody’s warned last week that heavy capital spending is eroding cash flows at US hyperscalers including Microsoft and Amazon, reinforcing doubts that data-center and cloud spending will justify elevated valuations.
Burry argued on Substack that much current and future AI demand is financed rather than driven by end customers, citing the 2026 BIS annual report and describing future revenues as part of a circular arrangement.
That skepticism challenges Beijing’s efforts to support its stock market, with the global AI trade and China’s tech bull run both faltering as investors reassess debt risks and cash-flow prospects.