"Big Short" Burry: Wall Street Is No Longer Favoring the AI Cash-Burning Model of Tech Giants

格隆汇 July 28｜Legendary hedge fund manager and "Big Short" Michael Burry stated that Wall Street's attitude towards tech giants heavily investing in artificial intelligence (AI) infrastructure has clearly changed. The market is gradually no longer rewarding large capital expenditures, but rather is focusing more on whether companies can turn their AI investments into actual profits and returns. Since early June, the stock performance of several major tech companies with the highest AI capital spending has lagged behind the broader market. Among them, Alphabet has become one of the weakest performers—despite having the highest forecasted capital expenditure over the next 12 months among large tech firms, its share price still significantly trails the market. In contrast, Apple, with its relatively low expected capital expenditure, has outperformed the broader market. Additionally, the estimated price-to-earnings ratios for companies including NVIDIA, Microsoft, Amazon, Alphabet, and Meta Platforms have all fallen from their recent highs, indicating that investors are re-evaluating whether massive AI investments can deliver sufficient returns. Burry stated bluntly: "The market has voted, and the result is very clear."