'Big Short' Burry warns: current tech stock rally is more extreme than during the dot-com bubble

Source: Global Market Report

Michael Burry, a well-known US investor and one of the protagonists of the movie "The Big Short," has issued a warning regarding the current surge in tech stocks, pointing out that the top performing stocks of the Nasdaq 100 index have already surpassed the staggering gains seen during the peak of the internet bubble.

On Wednesday local time, Burry shared data on X, highlighting SanDisk's astonishing surge compared to historic market leaders.

During the tech bubble of the late 1990s, Qualcomm was the star performer, with its 52-week rolling return reaching as high as 2,620%.

Now, SanDisk's gains have far exceeded this milestone, with its stock price soaring an unprecedented 3,960% from May 2025 to May 2026. Citing data, Burry noted, "SNDK's gains are 1,300 basis points higher than Qualcomm's."

He also pointed out that, ironically, SanDisk was the second-best performing stock in 1999, with gains as high as 581% at the time.

This historic outperformance is not limited to just one stock. Burry described the current surge in top tech stocks as an environment even more "extreme" than the late 1990s.

According to public data, the average return of the top 10 performing stocks in the Nasdaq 100 index in 1999 was 559%, and in the year leading up to March 2000, this figure soared further to 622%.

In contrast, the average gain for the top 10 performing stocks in the past year reached as high as 784%. Burry emphasized that this new generation of tech stocks has easily outperformed the two previous internet bubble periods.

Although this data depicts an unprecedented market momentum, it has also sparked questions about valuations and corporate operating models. Market observers responded to Burry's post by pointing out some potential concerns, with one user describing SNDK's recently released Q1 FY2026 financial report as a "far-fetched stunt."

As the Nasdaq index continues its rapid rise, Burry's comments serve as a stark reminder of historical market peaks and the potential fragility of record-breaking rallies.

SanDisk's share price has risen 493.98% year-to-date, while the Nasdaq Composite Index has risen 11.20% in the same period. On Wednesday, SanDisk closed up 0.26% at $1409.98 per share.