Huo Xing Finance reports that on May 11, Michael Burry, known for predicting the U.S. housing market crash and the inspiration behind "The Big Short," recently issued a warning that the current market's obsession with artificial intelligence is beginning to resemble the final stages before the dot-com bubble burst. In his personal blog, Burry stated that the stock market no longer responds logically or substantively to economic data such as employment reports or consumer confidence. "They are rising linearly only because they have been rising linearly, driven by nothing more than a two-letter phrase everyone believes they understand... It feels like the final months of the 1999–2000 bubble." Meanwhile, legendary macro trader and founder and chief investment officer of Tudor Investment Corporation, Paul Tudor Jones, has also compared the current AI-driven rally to the period preceding the dot-com crash, though he believes this bull market may still have room to rise further. Speaking to CNBC’s "Squawk Box," Jones said the current environment feels like 1999—about a year before tech stocks peaked in early 2000—and estimated this rally could continue for another one to two years. At the same time, Jones warned that if valuations continue to expand, the eventual correction could be extremely severe. Jones noted that if the market rises another 40%, the ratio of total market capitalization to GDP could reach a staggering 300% or even 350%. "Everyone knows that when that happens, some jaw-dropping correction is bound to occur."
Burry and Tudor Jones Compare AI-Driven Market to the 1999 Dot-Com Bubble
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Summary
On May 11, 2026, Michael Burry warned that the AI-driven market rally resembles the final stage of the 1999 dot-com bubble, stating that gains are driven by momentum rather than fundamentals. Paul Tudor Jones also drew parallels to 1999, estimating the rally could persist for one to two years. Both cautioned that a sharp correction may occur if valuations continue to rise. Altcoins to watch could experience similar volatility if the trend continues.
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