Burry Sees AI Bubble Bursting in '87-Style Crash

Dr. Michael Burry, known for his successful bets against the housing market in 2008 and his current bearish stance on AI stocks, sees similarities between the current market conditions and those leading up to the 1987 stock market crash.

Burry has been shorting several high-profile names, including Micron (NASDAQ:MU), Nvidia (NASDAQ:NVDA), and Oracle (NYSE:ORCL). While his track record is impressive, many are questioning whether he's too early in his bearish predictions.

Oracle, in particular, seems like an outlier in Burry's list of shorts. The stock has already crashed and is now trading at a relatively low price-to-earnings ratio of 16.0 times forward P/E. With the OCI backlog coming in cheap and OpenAI improving its financial footing, some see this as an opportunity to go long on Oracle rather than short it.