Michael Burry, famous for predicting the 2008 housing market crash, is now betting against AI stocks like Nvidia and Palantir. He accuses Big Tech companies of understating depreciation to inflate earnings, estimating a $176 billion understatement by hyperscalers by 2028. Burry plans to release more details on Nov. 25.

Alphabet, parent company of Google, has reached a market cap of over $3.5 trillion, potentially joining the $4 trillion club. Despite concerns about AI competition, Google reported stellar Q3 results with search revenues up 15% YoY and cloud revenues rising 34% YoY to $15.2 billion. Google continues to dominate in Search, Cloud, and YouTube.

Burry’s allegations have not impacted Alphabet’s stock, which has seen YTD gains of 51%. The company’s growth drivers include YouTube, Google Cloud, and Tensor Processing Units (TPUs). While Alphabet remains strong, Burry’s upcoming details may reignite concerns about the AI bubble, affecting tech stocks like Alphabet.

Read more at Yahoo Finance: Is GOOG Stock a Buy or Sell as Michael Burry Accuses Hyperscalers of ‘Fraud’?