'The market has voted': Michael Burry says Big Tech's AI spending is dragging down the S&P 500 — while Apple wins

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Big Short investor Michael Burry's latest X post is once again predicting doom for the AI industry.

"The market has voted and the results are clear," Burry said in his July 27 post (1). The post also includes two screenshots of charts showcasing Magnificent Seven companies' latest stock performances and valuation changes.

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Both charts are taken from a recent Bloomberg article (2). The first shows a negative correlation between each tech company's forward capex (or capital expenditure) estimates and its stock performance.

The second shows that big tech companies: Nvidia, Microsoft, Amazon, Alphabet, and Meta — five of the companies that make up the Magnificent Seven — have all seen their valuations decline under their 10 year average as of July 24.