Michael Burry of "The Big Short" fame warns of inflated tech stock valuations amid fears of an AI bubble

Michael Burry says several Nasdaq-100 tech names, including Meta and Tesla, have undercounted stock-based compensation costs, inflating reported earnings.

He argues that this makes many tech stocks look cheaper than they really are, with effective P/E ratios much higher than investors realize.

Burry warned that sector-wide earnings estimates may be too optimistic, adding to growing AI-bubble concerns.