Michael Burry "the end is nigh": structural short on the AI trade wakes up

The founder of Scion Asset Management posts a tweet in Joker mode about the AI bubble, echoing the tech sell-off in June. Contrarian signal or early call?

The fact

On July 4, 2026, Michael Burry (Scion Asset Management, famous for his subprime short in 2007) publishes a tweet quoting the Joker: "the end is nigh". The message repeats a well-known stance from Burry, who documented puts on NVDA, PLTR, and the SMH ETF (semiconductors) in his Q2 2026 13F (SEC EDGAR). Market context: the Nasdaq-100 closes the week down, and NVDA is significantly lower from June highs (Yahoo Finance, July 4, 2026), following the tech sell-off that has been in place since mid-June.

Our analysis

Burry is not "predicting" anything: he is documenting a classic divergence between valuation and earnings momentum. The forward PER of the Nasdaq-100 is at the top of its 10-year historical range (Bloomberg), while downward revisions of capex guidance from the Mag7 have accumulated since March. The position fits into the tech sell-off already in place since June (rotation towards value, defensives, gold). As in 2007, the signal may be early by 6-18 months: it's a structural thesis, not a short-term trade. The real indicator to follow is not Twitter but the pace of capex guidance revisions from the Mag7 and the trajectory of cloud AI margins.

To watch

NVDA Q2 results (August 26, 2026), capex guidance from the Mag7 for this season, next Scion Q2 13F publication (mid-August), open interest puts NVDA/PLTR (CBOE).