Michael Burry Revives ROIC Test for AI After 1998-2000 Dot-Com Bubble Lesson
Updated
Updated · TradingView · Jul 3
Michael Burry Revives ROIC Test for AI After 1998-2000 Dot-Com Bubble Lesson
1 articles · Updated · TradingView · Jul 3
Summary
Michael Burry said one question—“What will the ROIC be?”—still offers the clearest test for companies pouring billions into AI infrastructure.
Burry said that framework was shaped by the 1998-2000 dot-com bubble, when IBM’s once-busy Cottle Road campus had emptied by 1998, showing how quickly a dominant tech franchise could fade.
WorldCom sharpened that view in 2000: Burry said he examined whether the telecom group’s earnings could justify acquisition-led growth after factoring in its cost of capital.
The warning lands amid uneven tech performance, with software ETF IGV down 17% over 12 months even as broader U.S. technology ETF IYW has gained 43%.