Michael Burry is bearish again, this time comparing AI stocks to Internet bubble 2.0. Honestly, after making big money in 2008, this legendary short seller's predictions have become increasingly unreliable over the past few years.

First, let's discuss Michael Burry's main bearish arguments. He claims that tech giants are playing accounting tricks, using ultra-long depreciation periods to inflate earnings. Take Alphabet, for example, they set the server depreciation period to 4-6 years. It sounds suspicious, but in reality, the true lifespan of AI infrastructure is 15-20 years, and old GPUs haven't fully failed—they can still be used for inference (running models rather than training). So this argument doesn't hold water.

The second argument is even more absurd. Michael Burry warns that massive capital expenditures will drag down cash flow. But what does the data say? Alphabet's operating cash flow jumped from less than $100 billion to $164 billion this year, and that's driven by AI. The profit margins of tech giants are also expanding significantly, with an ROI exceeding 3:1. The latest intelligent AI agents can even help companies reduce costs by over 25%. Cash flow pressure? It simply doesn't exist.

The third argument compares Nvidia and Cisco's valuations in 2000. Michael Burry says Nvidia will fall like Cisco did, dropping over 20 years from its peak. But this comparison is ridiculous. Cisco's P/E ratio was over 200 at its March 2000 peak. Nvidia's current P/E is only 47, which is a reasonable valuation.

Now, let's see how the market is reacting. The rental price for H100 GPUs has increased by 17% since mid-December. What does this indicate? GPU shortages remain tight, and demand is still strong. This is clearly positive for AI infrastructure companies like Nebius and CoreWeave. Energy costs are the biggest bottleneck for large-scale data centers, so companies like Bloom Energy will also benefit.

Most interesting is the movement in the options market. On Monday, big funds bought 400 call options with the highest strike price for Bloom Energy, betting millions of dollars. Later that day, a large options whale spent $9 million on March $205 call options. Bloom's stock rose 8% that day against the trend, and the weekly chart is breaking out of a perfect ascending flag pattern.

Ultimately, Michael Burry's reputation as a contrarian investor is well established, but his current bearish narrative on AI faces solid data. From the continued rise in GPU leasing prices to the efficiency revolution brought by intelligent AI agents, the market's fundamentals remain bullish. Instead of following the crowd in bearishness, it's better to pay attention to what these data are telling us.