This article first appeared on GuruFocus.
Michael Burry (Trades, Portfolio) waved off the latest AI rally in his September 21 post. While the trade drew another round of cheers, he turned his attention toward copper and overlooked investments. The publicly visible portion of the post does not disclose a new company-specific short, a price target or a position size.
That caution meets a market with real earnings behind it. A Reuters analysis put the S&P 500 at roughly 20.3 times forward earnings and pointed to the substantial profits generated by today’s biggest AI companies. The GuruFocus graphic gives the SPDR S&P 500 ETF Trust (SPY), which tracks the index, a GF Score of 86/100. Growth and profitability stand out in its profile, while GF Value is weaker.
That mix makes the investor’s job more precise. An 86 score does not make every AI investment cheap, and Burry’s skepticism does not make every one of them a short. The questions are whether customer commitments become cash, whether new data centers earn enough to cover their costs, and whether those returns justify the prices investors pay today.