'Big Short' trader Danny Moses warns investors the AI bubble is real, and shares his playbook for staying ahead in the market
Story by sobrient@insider.com (Samuel O'Brient), Market Insider, December 20, 2025
Moses emphasized that his take on potential AI market problems isn't a call to short the industry. Rather, he noted it's a call for investors to do their homework and find the right names to gain valuable exposure as the market continues to grow.
In his view, that means sticking with the tech sector's most dominant names that have the resources to continue scaling and aren't bound by the same constraints that some smaller companies are. The best examples include Amazon, Google, Meta, and Microsoft.
"They can turn down their capex at any point, and they're still cash flowing positive, as opposed to these other companies, which are dependent upon that spending within AI," he said.
Moses isn't bullish on all of Big Tech's top names, though. He cited Oracle as an example of problems within the AI market, noting the company's high debt levels and the cash that it will require the fulfill the orders from tech clients. He also highlighted volatile tech stocks Super Micro Computer and CoreWeave as examples of riskier plays within the AI trade.
'Big Short' trader Danny Moses warns investors the AI bubble is real, and shares his playbook for staying ahead in the market |
