Legendary investor Warren Buffett once dubbed Michael Burry, famous for predicting the 2008 housing crisis, as 'Cassandra' for his accurate but initially ignored warnings. Now, Burry is sounding the alarm on a potential AI bubble, citing massive tech spending and rising debt. He sees parallels to the Dotcom crash, suggesting current market optimism might be detached from economic reality, leading him to place bearish bets on several major companies.

The Big Short investor calls Caterpillar one of the market's most overvalued AI trades—but an analyst argues the rally reflects a real structural shift in data-center power…

Michael Burry disclosed his first-ever short on Caterpillar at $1,060.98, calling its AI-driven 150% rally an unsustainable bubble alongside shorts on