Investor Michael Burry warns AI stock craze mirrors late 1990s Dot-com bubble risks.

Michael Burry, known for predicting the 2008 housing crash, warns that the current stock market rally driven by enthusiasm for AI-related companies resembles the late 1990s Dot-com bubble. Despite economic uncertainty, major U.S. indexes keep hitting record highs, fueled by momentum in AI and semiconductor stocks rather than fundamental economic data. Burry cautions that this excessive optimism and stretched valuations could lead to a significant market pullback if investor sentiment shifts.