The Economic Times

Was Michael Burry right about the AI bubble? Wall Street loses $2 trillion as AI and chip stocks plunge: Why are Tesla, Palantir, AMD, Broadcom and SanDisk crashing?

Michael Burry's warning about an AI bubble is back in focus as Wall Street loses more than $2 trillion in market value. On Thursday, November 5, AMD shares plunged around 12%, SanDisk fell 14%, Micron dropped 10%, while Nvidia lost nearly 7%. Tesla and Palantir also fell 9% and 8%, respectively. The sell-off spread across chipmakers, memory companies and AI infrastructure stocks. The Dow fell 2.36%, the S&P 500 dropped 3.11%, and the Nasdaq sank 4.20%, as investors questioned whether massive AI investments can deliver enough returns.