Key Stats for SOXX ETF
- YTD price change for SOXX stock: 66%
- $SOXX ETF Price as of May. 8: $520
- 52-Week High: $520
- 52-Week low: $200
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What Happened?
Michael Burry is sounding the alarm again. The investor made famous by “The Big Short” for predicting the 2008 housing crash published a Substack post on Friday comparing today’s AI-driven stock market to the final months of the dot-com bubble.
“Absolutely non-stop AI. Nobody is talking about anything else all day,” Burry wrote after spending a long drive listening to financial media.
His takeaway? The market is no longer reacting to economic data in any logical way.
The S&P 500 hit a fresh record high on Friday. But here’s the problem: it did so on the same day consumer sentiment fell to a new all-time low.
The jobs report was slightly better than feared — 115,000 new jobs added versus a consensus estimate of 55,000 — but wage growth missed expectations and tech-related jobs continued to fall.
“Stocks are not up or down because of jobs or consumer sentiment,” Michael Burry wrote. “They are going straight up because they have been going straight up. On a two letter thesis that everyone thinks they understand… Feeling like the last months of the 1999-2000 bubble.”
He pointed specifically to the Philadelphia Semiconductor Index, which is up more than 10% in just one week and has surged 65% so far in 2026.
That kind of move in chip stocks closely mirrors what happened in the months leading up to the dot-com collapse in March 2000.
Burry isn’t alone in drawing this comparison. Paul Tudor Jones told CNBC this week that today’s market feels a lot like 1999 — about a year before tech stocks peaked.
He thinks the rally could continue another year or two, but warned the eventual correction could be severe. “Just imagine the stock market went up another 40%,” Jones said. “You just know that there’ll be some breathtaking kind of corrections.”
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What the Market Is Telling Us About the SOXX ETF
Right now, the market is choosing optimism. Investors are focused on AI and largely brushing aside soft data like consumer sentiment, which fell to 48.2 in May — a new record low.
Gas prices near $4.54 per gallon nationally, driven by the ongoing conflict in Iran, are weighing on everyday Americans. But stock buyers don’t seem to care.
That disconnect is exactly what Michael Burry finds alarming.
During the dot-com boom, investors also ignored warning signs because momentum felt unstoppable. Michael Burry was one of the few people paying attention back then. He’s paying attention again now.
The debate is whether the AI rally has another year left or is already in its final innings. But the warning from one of the most famous contrarian investors in history is hard to ignore.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
