Investing.com -- Michael Burry disclosed new purchases in several companies he views as undervalued, while warning that the artificial intelligence boom is creating market distortions similar to those seen during the dot-com era.

The investor, known for predicting the housing crash and later featured in The Big Short, said Monday he added to Latin American e-commerce company MercadoLibre in the mid-$1,500 range. He described the stock as a clean long-term winner trading at a discount due to its international exposure.

Burry also increased positions in Adobe, PayPal and Zoetis, while establishing a full-sized stake in Lululemon.

The investor said these stocks are being overlooked as capital flows into AI-related investments. He drew parallels to 1999, when older economy and international companies were abandoned in favor of technology stocks.

Burry cited data from Apollo Chief Economist Torsten Slok showing that 87% of venture capital funding now goes to AI-related companies. AI-linked borrowers represent nearly half of investment-grade bond issuance and roughly 38% of high-yield debt issuance.

He compared these figures to the period before the dot-com collapse, when internet and telecom companies dominated financing activity. More than $100 billion of investment-grade debt issued during the 1999 and 2000 technology boom was later downgraded to junk status within a few years.

Burry called the current situation an asset bubble.