{"id":626046,"date":"2026-08-07T21:35:51","date_gmt":"2026-08-07T21:35:51","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/626046\/"},"modified":"2026-08-07T21:35:51","modified_gmt":"2026-08-07T21:35:51","slug":"michael-burry-issues-blunt-warning-as-he-bets-against-2-ai-favorites","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/626046\/","title":{"rendered":"Michael Burry issues blunt warning as he bets against 2 AI favorites"},"content":{"rendered":"\n

Michael Burry<\/a> has been building short-semiconductor-book lately. I covered his Micron<\/a> short, his Caterpillar<\/a> bet, and his SOXX<\/a> position. His pattern has been consistent. <\/p>\n

He first identifies a narrative the market treats as infallible, finds the structural vulnerability underneath it, and waits. <\/p>\n

Thursday, Aug. 6, he moved into two new targets. And the framing he used tells you exactly how he is thinking about the Artificial Intelligence<\/a> (AI<\/a>) infrastructure trade right now. <\/p>\n

Burry disclosed a short position in Oracle (ORCL<\/a>) at $144.63 per share and a larger short exposure in Nebius Group (NBIS<\/a>) at $211.77, pointing out growing leverage risks tied to off-balance-sheet commitments across the tech and cloud sectors.\u00a0 <\/p>\n

According to a Substack post<\/a>, He described companies carrying long-term lease obligations that dwarf their current revenue metrics as “very fat, very large, easy to shoot” fish. <\/p>\n

ORCL is down 25.68% year-to-date and 43.41% over the past year, according to Yahoo Finance<\/a>. <\/p>\n

NBIS<\/a> is up 126.84% year-to-date and 244.67% over the past year. Burry is shorting the loser and the winner simultaneously. This is the interesting part of this disclosure. <\/p>\n

Also Read: Michael Burry Latest News and Stories<\/strong><\/a> <\/p>\n

The off-balance-sheet argument Burry is making <\/p>\n

Burry’s bear case is not actually about revenue or product quality. It is about the liability structure. <\/p>\n

Many cloud and AI infrastructure companies carry enormous lease obligations for data center space, power contracts, and compute capacity that do not appear prominently on the income statement but represent multi-year committed cash outflows.\u00a0 <\/p>\n

When demand for AI infrastructure outpaces supply, those commitments look like competitive advantages. When the supply cycle turns, they become fixed costs against declining revenue. <\/p>\n

More Manager Buy\/Sells:<\/strong> <\/p>\n

Burry’s thesis, as I read it across his recent disclosures, is that the AI infrastructure build-out has pulled forward years of demand into a compressed window.\u00a0 <\/p>\n

The companies that signed 10-year data center leases and committed billions in GPU capacity at 2025 and 2026 prices to meet 2026 demand may find themselves over-leveraged when the cycle moderates. <\/p>\n

He has made this argument across semiconductor equipment, memory chips, and now enterprise cloud. Oracle and Nebius represent two very different positions on the AI infrastructure spectrum, which is why both appearing in the same short book is the revealing detail. <\/p>\n

Story Continues <\/p>\n

Oracle \u2014 the record quarter Burry is still betting against <\/p>\n

I just mentioned that Burry’s bear case is not about revenue or product quality. Because if it were, Oracle wouldn’t be one of his shorts.\u00a0 <\/p>\n

Oracle’s most recent quarterly results were objectively strong.\u00a0 <\/p>\n