A $680 Billion Headwind Faces These 4 Tech Stocks. Should You Sell Them Now?

Not long ago, Michael Burry became bearish on the AI trade. In fact, he called some of the biggest names frauds, referring to their accounting practices. Morgan Stanley has now come out with a warning: the huge investments in AI could result in higher-than-anticipated depreciation charges over the next few years. Was Burry right all along?

Morgan Stanley points out that many of the hyperscalers, including Oracle (ORCL), Alphabet (GOOG) (GOOGL), Microsoft (MSFT), and Meta Platforms (META), were originally involved in asset-light business models. They are only now shifting to infrastructure-heavy operations by setting up AI projects that demand big data centers. Collectively, these companies could face over $680 billion in depreciation charges in the next four years! If investors hadn’t taken Michael Burry’s earlier warnings seriously, they might want to do so now.