Wall Street Wildlife Investing Podcast

E107: Thiel and Burry Are Betting Against AI - Is the Bubble Bursting?

Nov 23, 2025
Big investors like Michael Burry and Peter Thiel are pulling back from AI bets, raising concerns about a possible bubble. There's talk about AI infrastructure costs skyrocketing, with rapid tech depreciation as a major risk. A lawsuit against Citadel draws parallels to GameStop's saga, highlighting issues of market manipulation. The hosts debate their investment strategies—one opts for safety while the other bets on high-stakes data centers. The geopolitical landscape adds urgency, as the US-China race may be the only thing holding the markets steady.
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INSIGHT

Smart-Money Exits Aren't Proof Of Pop

  • Big-name exits from Nvidia (Burry, Thiel, SoftBank) are an early warning signal, not proof of a crash.
  • Large asset managers can move prices and create short-term fear that cascades into retail selling.
INSIGHT

Price Moves Often Reflect Flow, Not Fundamentals

  • Large funds can deliberately drive prices down to induce panic and buy at lower levels.
  • Short-term price moves often reflect flow and tactics, not fundamental value changes.
ADVICE

Ignore Short-Term Panic If You're Long-Term

  • Take a long-term view unless you are explicitly trading short-term.
  • Maintain an emotional plan and avoid reacting to short-term market panic.
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