By Sasha Rogelberg
Publication Date: 2025-11-24 16:23:00
Michael Burry has doubled down on his concerns of an AI bubble, drawing similarities between Cisco during the late ‘90’s dot-com crash and one key tech company today.
In his first Substack post entitled “The Cardinal Sign of a Bubble: Supply-Side Gluttony” published on Sunday, Burry, who was made famous for his prescience on the 2008 housing market collapse made famous in the 2015 film The Big Short, called the AI boom a “glorious folly,” singling out Nvidia as a harbinger for when he expects the industry’s bubble to burst.
“Folly makes money. Creative destruction and manic folly are exactly why the U.S. is the center of innovation in the world,” Burry said. “Companies are allowed to innovate themselves to death. And ever more spring up to do the same. Sometimes the new company is the same company on a pivot.”
During the dot-com boom, Burry said the tech industry was defined by “highly profitable large caps, among which were the so-called ‘Four Horsemen’ of the era—Microsoft, Intel, Dell, and Cisco.” Similarly, there are five publicly traded horsemen of the current AI boom, according to Burry: Microsoft, Google, Meta, Amazon and Oracle.
Notably, Burry singled out Cisco as the company at the forefront of the dot-com bubble burst. The tech company’s stock surged 3,800% between 1995 and 2000, becoming the most valuable company in the world with a market capitalization of about $560 billion. The tech firm’s stock collapsed at the turn of the…
