The investor famed for his role in "The Big Short," Michael Burry, has indicated that after lagging behind other global markets in this year's artificial intelligence (AI) surge, now is an opportune moment for investors to seek out undervalued opportunities in the Hong Kong stock market.
Year-to-date, the Hang Seng Index in Hong Kong has declined by 4.9%, primarily pressured by weak consumer spending and diminished market confidence in China's e-commerce sector.
In contrast, driven by significant gains in South Korea's two largest chipmakers, the country's benchmark stock index has surged 62% this year. Japan's Nikkei 225 index has risen 26% since the start of 2026, while the iShares Semiconductor ETF (SOXX), which tracks the semiconductor sector, has soared an impressive 76% over the same period.
Burry posted on social platform X this Friday, stating, "As the glow fades from Korea, Japan, and SOXX, now is a great time, especially, to go hunting in Hong Kong for cheap stocks that can do well."
Earlier this month, Burry also mentioned that he had increased his holdings in the Chinese e-commerce company JD.com.
Burry gained fame for successfully shorting the U.S. housing market before the 2008 global financial crisis. His latest comments come as the global sell-off in chip stocks intensifies.
Growing skepticism about AI companies' ability to commercialize their technology and generate returns on massive capital expenditures is shaking investor confidence in the AI supply chain.
Concurrently, a growing number of institutions are expressing optimism about the Hong Kong stock market. Morgan Stanley recently also advised investors to consider buying Hong Kong stocks on dips, citing, among other reasons, market optimism regarding corporate earnings prospects.
Comments