Investor Michael Burry warns artificial intelligence stocks face an earlier market crash

Famous investor Michael Burry is growing more negative on artificial intelligence stocks and now expects the market bubble to burst sooner than expected. He has moved toward leveraged put options as part of this shift in his outlook. ## Market Risks Burry warns that high stock prices and heavy spending on artificial intelligence create big risks for the market. Research shows that if companies make weak revenue from artificial intelligence, they might cut their spending quickly. He compares the current market situation to the 1987 crash and the dotcom crash. ## Market Top Burry states that the market is close to a major top. He points out the risk of a crash similar to 1987, when the Dow Jones fell by twenty-three percent in a historic drop. ## Context Stock market investors often look at historical crashes like 1987 and the dotcom era to understand what happens when high-flying tech sectors face sudden corrections. Market bubbles typically form when heavy spending outpaces actual earnings, leaving investors vulnerable if revenue targets are missed.