Michael Burry, famed for predicting the 2008 housing crash, is once again raising red flags. This time he is focused on Big Tech’s accounting practices. In a recent post on X, the “Big Short” investor warned that major technology companies may be understating depreciation by a massive $176 billion between 2026 and 2028, artificially inflating earnings and misleading investors.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
According to Burry’s estimates, Oracle (ORCL) could overstate earnings by 26.9% by 2028, and Meta (META) may inflate profits by 20.8% over the same period.
This latest warning follows Burry’s disclosure in early November 2025 of owning put options against Nvidia (NVDA) and Palantir (PLTR), reflecting a bearish bet on the AI industry.
Importantly, Burry has stated he will provide more details on November 25, 2025.
Burry Raises Red Flags Over AI Hardware Depreciation
Burry’s concern centers on how tech giants, specifically “hyperscalers” using Nvidia chips, are extending the “useful life” of their computing and networking equipment, calling it “one of the more common frauds of the modern era.”
By stretching depreciation schedules from the typical 2 to 3 years to as long as 5 to 6 years, the companies reduce reported expenses, making profits appear stronger than they actually are.
His concerns target companies such as Meta, Alphabet (GOOGL), Microsoft (MSFT), Oracle, and Amazon (AMZN).
Which Is the Best AI Stock to Buy, According to Analysts?
Here’s a list of top-rated AI stocks, according to Wall Street analysts. Let’s compare them using the TipRanks Stock Comparison Tool to see which looks most attractive.
