America’s biggest investor, Michael Burry published a software-sector sector research report on May 29 and made it freely available on June 21 outlining which companies he believes are best positioned for the AI era and which face greater disruption risks. Burry pushed back against claims that software companies are ‘dead’, arguing that large language models (LLMs) cannot replace human creativity. “LLMs, no matter how advanced they get at being LLMs, will never beat that creative instinct of a talented human being,” he wrote. He also cited Adobe as a company unfairly discounted by investors, pointing to its expanding AI offerings like Firefly, Firefly Foundry, and Acrobat AI, and its distribution across ecosystems including OpenAI, Anthropic, Google, and Microsoft.Along with this, Autodesk was highlighted as well-positioned, given its role in industries where expertise, accountability and regulatory requirements remain central areas where AI tools cannot easily substitute human oversight.
Intuit benefits from trust and accountability
Burry also praised Intuit for its strong position in tax preparation, accounting, and financial services. He quoted CEO Sasan Goodarzi, “Ultimately, customers buy confidence, not code.” Burry argued that Intuit’s proprietary data, industry expertise, and long-standing customer relationships give it resilience against AI disruption.
DocuSign faces tougher outlook
By contrast, Burry was cautious on DocuSign, saying its e-signature business has plateaued and faces competition from AI-powered workflows and larger providers like Adobe Acrobat Sign and Microsoft 365. “A first mover in e-signature was always destined to be subsumed or competed out of existence,” he noted.
Michael Burry invests in Chinese stock BABA
Recently, Burry revealed that he has increased his position in Alibaba Group (BABA). According to a report by Stockwits, in a Substack post, Burry said he purchased additional shares at $111.90, describing the Chinese tech giant as “the most advanced company in China as far as AI strategy goes.” Burry’s bullish stance on Alibaba comes as his fund has taken positions against U.S. AI leaders like Nvidia and Palantir. He has repeatedly warned that valuations in the American AI sector are inflated by hype rather than sustainable fundamentals, contrasting them with what he sees as undervalued opportunities in China.Burry highlighted, Alibaba’s ongoing stock repurchase program as a key factor in his investment thesis, arguing that buybacks are boosting shareholder value even though the market has yet to fully recognise it. He added: “The stock is well-off recent highs. When the time comes, the stock will launch fast and fly high.” Alibaba has committed $56 billion over three years to expand its AI footprint, including cloud computing, semiconductors, and model deployment.