Michael Burry Makes Startling AI Boom Call on Trump
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Michael Burry Makes Startling AI Boom Call on Trump Moz Farooque ACCA Mon, September 28, 2026 at 2:53 PM EDT 2 min read NVDA This article first appeared on GuruFocus . Michael Burry ( Trades , Portfolio ) is sharpening his warning about the artificial-intelligence boom, arguing that AI infrastructure spending has become so important to the U.S. economy that President Donald Trump's administration cannot afford to see the buildout unravel. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator. The Big Short investor remains bearish on several of the companies powering that expansion, creating an unusual split in his thesis: Burry believes AI spending is supporting economic growth while simultaneously questioning whether investors funding it will ultimately earn acceptable returns. Trump and his team know that the AI narrative and the buildout is the only thing keeping this economy going, and the most positive thing happening this year, Burry wrote in a recent Substack chat. They cannot afford to let it fall. There is evidence that AI investment has become economically significant, though Burry's characterization is much stronger than available economic estimates suggest. J.P. Morgan Asset Management estimates AI-related investment contributed about 0.47 percentage points to the 2.1% pace of U.S. real GDP growth over the past year, roughly one-fifth of total growth after adjusting for imported hardware. Hyperscalers are expected to spend nearly $800 billion on capital expenditures this year. Burry, however, has repeatedly questioned whether that spending ultimately produces durable returns. Recent reports show him increasing bearish exposure to Micron ( NASDAQ:MU ), Nebius ( NASDAQ:NBIS ), Palantir ( NASDAQ:PLTR ) and semiconductor stocks. The AI trade is also intersecting with Trump's disclosed investment portfolio. His accounts reported 1,156 securities transactions in July worth an estimated $79 million to $270 million. Among the largest were Microsoft ( NASDAQ:MSFT ) and Amazon ( NASDAQ:AMZN ) sales valued between $5 million and $25 million each, followed days later by smaller purchases of both stocks. Burry's argument highlights the central tension facing AI investors. The infrastructure boom is now large enough to materially contribute to economic growth, corporate investment and capital markets. But that does not automatically mean every company spending billions on GPUs and data centers will earn attractive returns. For Nvidia ( NASDAQ:NVDA ), Oracle ( NYSE:ORCL ), CoreWeave ( NASDAQ:CRWV ) and other AI-linked stocks, investors should increasingly watch utilization, financing costs, free cash flow and actual returns on AI capital spending. That is where Burry's bearish thesis will ultimately be tested.
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