The S&P 500 closed at a record 7,737 points on August 4, its first new high in two months, driven by solid corporate earnings and hopes for de-escalation in the Middle East. Michael Burry, the investor who predicted the subprime crisis, published a post on Substack reaffirming his short positions on the SOXX semiconductor ETF, Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials, arguing that artificial intelligence has pushed valuations far beyond what fundamentals justify. He raised the possibility of a major peak followed by a 1987-style crash, while acknowledging he has previously predicted crashes that never materialized. His Palantir puts currently show a 35 % gain, while his Nvidia puts, with a strike price of 110 dollars expiring in December 2027, remain underwater. The Nasdaq 100 currently trades at 43 times earnings, well above the 30-times threshold typically used by fund managers, fueling doubts about the sustainability of current valuations.
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