Michael Burry, the prominent investor known for his role in "The Big Short," has suggested that the current artificial intelligence boom led by NVIDIA may follow a pattern of boom and bust similar to the radio craze of the 1920s.

Over the weekend, Burry drew a comparison between the present AI surge and the speculative mania surrounding RCA nearly a century ago.

"In the 1920s, the frenzy for radio was almost entirely concentrated in one stock: RCA," Burry wrote on the social media platform X.

He noted that although radio technology continued to develop over the following decades, RCA's stock price plummeted by approximately 98% in the early 1930s.

"Even if you predicted that radio technology would dominate for half a century, you would have lost money investing in RCA," he added, including a reference to NVIDIA.

During the 1920s, RCA's stock price surged nearly 200-fold, marking one of the most astonishing rallies in market history.

However, after peaking in 1929, the stock began a steep decline, falling from $114.75 in September 1929 to just $2.625 by May 1932—a drop of 98%.

Over time, RCA eventually recovered and surpassed its 1929 peak. Following a 3-for-1 stock split, its shares reached $66. The company was ultimately acquired by General Electric in 1986.

Earlier the same day, Burry also raised the question of whether massive AI-related capital expenditures can be sustained without harming corporate financial health.

He listed several companies, including Microsoft, Meta, Alphabet, and Amazon, and asked, "When will the spending on AI data centers actually stop?"

Burry pointed out that investments in AI infrastructure are consuming cash flow and increasing borrowing.

"You are borrowing and spending at an unprecedented rate," he wrote, questioning whether companies are adjusting accounting methods to ease profit pressures.