Understanding Michael Burry's Bet Against AI: Here's What it Really Means for Investors

Famed investor Michael Burry's bets against AI-focused companies such as Nvidia (NASDAQ: NVDA) have attracted significant attention, not least because the reasons he gives to support his views challenge the investment thesis for many major technology companies, notably those in the most exciting growth area of the economy right now.Burry, the manager of hedge fund Scion Capital, said he believes that hyperscalers are making overly optimistic estimates for the rate at which their AI-related hardware, like servers, GPUs, and network equipment, will depreciate. Basically, he says they assume that the useful lifespan of that hardware will be longer than he thinks is realistic. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool