Michael Burry warns that AI rally may be near its end using semiconductor chart

Burry points out that the Philadelphia Semiconductor Index is at a 15-year high, while AI token spending has dropped 20% since May; the semiconductor sector has also corrected 9% from its June peak. He disclosed that he has bet on declines in stocks like Nvidia and Tesla through put options, believing that the AI cycle may have peaked as users are shifting to cheaper models.
Market views are divided: some believe the current trend resembles the pattern of past market tops, while bulls point to strong earnings from companies like Micron and the expected spending of up to $300 billion by hyperscale cloud providers as still supporting the AI rally.