Wed, 05 Nov 2025

Wed, 05 Nov 2025 Trader who inspired The Big Short bets against AI as tech shares fall

Shares of major tech companies have fallen in the US and Japan over fears about AI bubble

* Shares of major tech companies, particularly those linked to the artificial intelligence (AI) industry, have fallen due to concerns over valuations.
* Investors are calling it an "AI bubble" and have grown wary of record-high tech stock valuations this year.
* Major indexes in Asia, led by Japan's Nikkei 225, fell significantly on Wednesday, with SoftBank plummeting over 10%.
* Hedge fund investor Michael Burry, known for predicting the US housing bubble collapse, has bet $1.1bn on a fall in AI-related stocks Nvidia and Palantir.
* Markets worldwide have climbed as investors placed bets on AI-linked companies, but now face "fatigue" and question the sustainability of AI hype.
* Analysts attribute the decline to high spending within AI-focused tech firms, which may not be generating enough revenue to justify investments.
* SoftBank's decline is attributed to its heavy investment in AI development, leaving it vulnerable to pullbacks when market sentiments shift.
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