{
  "id": 18357147,
  "title": "AI stocks crash: Was Michael Burry right all along?",
  "url": "https://urgent.news/2026/11/05/ai-stocks-crash-was-michael-burry-right-all-along",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-05T17:15:17.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/international/us/was-michael-burry-right-about-the-ai-bubble-wall-street-loses-2-trillion-as-ai-and-chip-stocks-plunge-why-are-tesla-palantir-amd-broadcom-and-sandisk-crashing/articleshow/135581323.cms"
  },
  "original_language": "en",
  "account": "On Thursday, November 5, Wall Street experienced a significant sell-off as investors questioned the valuations of artificial intelligence-related companies. The Dow Jones Industrial Average plummeted 2.36%, the S&P 500 fell 3.11%, and the Nasdaq Composite dropped 4.20%. The technology-heavy Nasdaq was hit hardest due to its exposure to semiconductor and AI companies, with the Philadelphia Semiconductor Index losing around 11% in intraday trading.\n\nThe decline mirrored a post-election rally on Wednesday and raised concerns about potential political opposition to data center development, which could slow AI infrastructure expansion. Candidates who supported restrictions on data center development secured victories in Texas and Georgia.\n\nMichael Burry, a hedge fund manager who accurately predicted the 2008 housing crisis, had previously warned about an AI bubble. His concerns stemmed from high valuations, aggressive capital spending, and accounting assumptions used by companies investing in expensive AI hardware. Burry has taken bearish positions in Nvidia, Micron, and Palantir, including put options.\n\nThe tech-heavy Nasdaq saw the steepest losses, with Nvidia's stock dropping 6.74%, AMD declined 12%, and Micron's stock fell 10%. The sell-off reversed Wednesday's post-election rally, which followed the Democrats' victory in the US midterm elections.\n\nWhile the AI boom may be busting, one session cannot confirm the end of the growth phase. Investors now need evidence that AI infrastructure spending can generate sustainable revenue, cash flow, and profits. Factors like high borrowing costs, potential data center restrictions, semiconductor competition, and stretched valuations are adding pressure to the sector.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}