Investor Michael Burry agreed with the Founder, CEO, and Co-Chief Investment Officer of Citadel LLC, Ken Griffin‘s assessment that graphics processing unit (GPU) prices will fall due to overcapacity, stating the outcome is apparent to anyone with a “working brain cell.”
Burry Agrees With Citadel CEO
On Monday, Burry responded to a post on the social media platform X that highlighted Griffin’s bear case regarding artificial intelligence GPU supply.
The original post featured a video clip from the Future of Global Markets conference held on Oct. 21, quoting Griffin’s statement that “GPUs, like airlines, have a very low marginal cost to run” and that “the moment you have overcapacity, pricing goes into freefall.”
Sharing the post, Burry wrote, “This is obvious to most with a working brain cell.”
Broader AI Bubble Warning
Addressing the broader sector at the same time, Griffin stated investors are “almost certainly” in an AI bubble. He added that “any radical transformation of our economy is generally intertwined with a bubble.”
Griffin also noted that corporate America is scrutinizing its bills and actively evaluating how to maximize the return on AI spending.
Burry’s Broader Bear Market Outlook
Burry’s remarks on GPU overcapacity follow his recent publications warning of broader market overvaluation. In an Oct. 18 X post sharing his Substack analysis, Burry examined the S&P 500 following its Oct. 6 record high. He categorized S&P 500 constituents into “Leaders,” “Broken” stocks (down 20-40% from their tops), and “Busted” stocks (down more than 40%).
Burry suggested that “truly busted stocks” could be a “decent haven through the bear market, even if it lasts years.”
Noting that “speculation has overrun investing” and that stock indices appear “overstretched,” Burry warned investors to prepare for the possibility of another “15-20 year period of negative or little real returns in stocks.”
How Have the Stock Markets and AI-linked Securities Performed?
The S&P 500 index has advanced 11.16% year-to-date. Similarly, the Nasdaq Composite index was up 11.70%, and the Dow Jones gained 7.92% YTD.
On Friday, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq-100, respectively, closed lower. SPY fell 0.52% to $759.97, while QQQ declined 0.01% to $704.40. Meanwhile, the Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), ended 1.24% lower at $521.37.
Here’s a list of some AI-linked ETFs that can provide AI exposure to investors in their portfolio.
| Stocks | YTD Performance | Six Months Performance | One Year Performance |
| iShares Future AI & Tech ETF (NYSE:ARTY) | 41.83% | 14.65% | 43.01% |
| Roundhill Generative AI & Technology ETF (NYSE:CHAT) | 30.00% | -0.09% | 21.61% |
| Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) | 21.28% | 16.41% | 21.95% |
| WisdomTree AI and Innovation Fund (BATS:WTAI) | 25.70% | 5.84% | 21.05% |
| iShares Semiconductor ETF (NASDAQ:SOXX) | 56.83% | 8.44% | 64.30% |
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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