Wall Street loses $2 trillion as AI and chip stocks plunge, reviving Michael Burry's bubble warning

Wall Street lost over $2 trillion on Thursday, November 5, as AI and chip stocks plunged, with AMD down 12%, SanDisk falling 14%, and Nvidia dropping nearly 7%, bringing Michael Burry's AI bubble warning back into focus. The Nasdaq sank 4.20% to 24,655.51, the S&P 500 fell 3.11%, and the Dow dropped 2.36%, reversing Wednesday's post-election rally. Investors questioned whether massive AI infrastructure investments can deliver sufficient returns, while political victories for data centre restrictions in Texas and Georgia added pressure. Burry, who predicted the 2008 housing crisis, has taken bearish positions on Nvidia, Micron and Palantir, citing high valuations and aggressive capital spending. UBS warned that 30% of planned 2028 data centre capacity could face delays, though one trading session does not prove the AI boom is over.