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Michael Burry Warns Nasdaq 100 Overvaluation, Reversal Ahead

5/12/2026

46 5 Full Breakdown

Summary

Burry Warns Reversal

Michael Burry warned the Nasdaq 100 is set for reversal.
He said the index rose 27% on a few AI chip stocks and now trades at 43 times earnings, a 30-times multiple.
Burry noted ten firms make up 40% of the S&P 500, a concentration like 2000.
Wall Street ignored his alert as the Nasdaq 100 and S&P 500 hit highs, while Ed Yardeni raised his year-end S&P 500 target.

Summary

Burry Predicts Reversal

Michael Burry holds a significant leveraged short position against companies he describes as “depressed and cheap.”
He notes the iShares Semiconductor ETF is up 65% year-to-date while the Nasdaq 100 rose 16% last month.
Burry warns that staying on “parabolic moves” without selling bets on investors’ ability to jump off at the top.
He says the U.S.–Iran conflict and rising oil prices could trigger the market reversal he predicts.

Summary

Burry Urges Patience

Michael Burry warned investors shorting the market is not the answer because puts are costly.
He urged them to raise cash, hold it, and deploy it later, rejecting greed during AI hype.
Wall Street analysts say the AI-fuelled rally is detached from fundamentals, even as U.S. indexes hit record highs despite the Middle East war.
Burry likened the Philadelphia Semiconductor Index’s rise to the March 2000 run-up, mirroring the 1999-2000 bubble.

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Burry Warns Reversal

Michael Burry warned the Nasdaq 100 is set for reversal.
He said the index rose 27% on a few AI chip stocks and now trades at 43 times earnings, a 30-times multiple.
Burry noted ten firms make up 40% of the S&P 500, a concentration like 2000.
Wall Street ignored his alert as the Nasdaq 100 and S&P 500 hit highs, while Ed Yardeni raised his year-end S&P 500 target.

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