Michael Burry Says Market At 'Peak AI Threat’ — Flags INTU, NOW As Software Plays Worth Watching

• Burry said “certain” software stocks are set for a rebound, adding that he found Intuit and ServiceNow stock levels “interesting.”
• Comments from Burry often trigger sharp trades.
• Software shares declined handily in the March quarter; INTU is down 36.6% YTD, while NOW has dropped 32%.

Ace investor Michael Burry flagged Intuit, Inc. (INTU) and ServiceNow, Inc. (NOW) as potential investment opportunities, saying that the market is at “peak AI threat now” and “certain” software stocks would rebound after the sharp selloff in the category in recent months.

“Intuit is interesting,” Burry said in the chatroom on his Substack page, which has recently become the source of his market insights.  “I do worry Intuit is subject to disruption, but there is a bit of a network effect in how many people use their product. I believe we are at peak AI threat now, and reality will boost software stocks from these levels. Not all of them but some certain ones,” he said.

Burry’s Market Influence

Comments and positions from Burry, famed for predicting and profiting from the 2008 financial crisis, often trigger heavy trading in the names he highlights. His remarks and those of hedge-fund billionaire Bill Ackman about Fannie Mae and Freddie Mac earlier this week helped trigger a 50% surge in the mortgage giants’ OTC shares. 

His short bet on Palantir, running counter to the market’s AI-fueled euphoria around the data analytics firm, has weighed on the stock since he first disclosed it last September.

On ServiceNow, Burry said he agreed with a trader’s assessment that the software company’s stock had become attractive but “not quite where I would think of buying.” He did not elaborate on his thesis for ServiceNow and Intuit, nor discussed taking a position.

Intuit, whose flagship products include TurboTax, QuickBooks, and Credit Karma, helps individuals and businesses manage taxes, accounting, and personal finance. The stock suffered a sharp selloff in recent months after Anthropic unveiled new Claude AI tools that partly overlap with Intuit's core offerings. Those concerns eased somewhat after the two companies struck a partnership to integrate Intuit's tools directly within the Claude chatbot. ServiceNow, which sells software that helps companies automate workflows across IT, HR, and customer operations, was caught in the same Anthropic-driven selloff.

On Big Tech, Burry said he believes that large investors who piled heavily into top names, including Microsoft, in the last few years would find it hard to generate returns on their investments.

Tech Market Mayhem

A wave of new AI tool launches, particularly from Anthropic, combined with investor concerns over overheated tech valuations, has hammered shares of software companies once praised for their high margins and predictable revenue streams.

The pressure intensified after a broader market selloff in March, tied to the ongoing U.S.-Iran conflict, which has now stretched into its second month.

In the first quarter, Atlassian Corp shares dropped about 70%, and Workday and Zscaler shares dropped about 40% – their worst quarterly performance on record. Microsoft stock shed about 24% in its worst quarterly performance since the 2008 financial crisis.

INTU shares are down 36.6% year-to-date, while NOW shares have declined 32%. On Stocktwits, the retail sentiment for the tickers was ‘bearish’ as of early Thursday.

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