Michael Burry Doubles Nasdaq 100 Bets Against AI and Semiconductor Stocks
Michael Burry, the investor known for predicting the 2008 financial crisis, has doubled his Nasdaq 100 put position and increased his bearish exposure to semiconductor stocks, according to his Substack newsletter.
Burry said he used a rebound in the Nasdaq 100 from the 27,000 level to double his put position, targeting an early 2027 expiry with a strike approximately 20% below the market level.
He also repurchased 25% of a semiconductor ETF put position expiring in June that he had previously reduced.
Burry is targeting the VanEck Semiconductor ETF (SMH), which has Nvidia as its largest holding. He said semiconductor valuations still have room to fall and expects earnings across the fund's holdings to decline over the next couple of years.
He prefers shorting SMH over the iShares Semiconductor ETF (SOXX), arguing that SOXX has larger exposures to AMD and Broadcom, which he believes could benefit if Nvidia's market dominance weakens.
Burry also highlighted companies including Nebius, TSMC, ASML and CoreWeave, arguing that they benefited from Nvidia's market power and could face a changing competitive environment.
His bearish positioning comes amid reports of a US Department of Justice antitrust investigation involving Nvidia. Semafor reported that the DOJ is conducting multiple probes involving Nvidia and other companies, although there was no indication of planned criminal charges against Nvidia or Jensen Huang.
Super Micro Computer shares reportedly fell approximately 12% following the reports.
Nvidia is scheduled to report its quarterly earnings on November 17, adding another key event for investors to watch.
Key takeaway: Burry is increasing bearish bets on the Nasdaq 100 and semiconductor sector, citing stretched valuations, earnings concerns and potential regulatory pressure on Nvidia. His positioning signals caution toward the AI trade, but does not establish that a broader semiconductor downturn is inevitable.
Michael Burry, the investor known for predicting the 2008 financial crisis, has doubled his Nasdaq 100 put position and increased his bearish exposure to semiconductor stocks, according to his Substack newsletter.
Burry said he used a rebound in the Nasdaq 100 from the 27,000 level to double his put position, targeting an early 2027 expiry with a strike approximately 20% below the market level.
He also repurchased 25% of a semiconductor ETF put position expiring in June that he had previously reduced.
Burry is targeting the VanEck Semiconductor ETF (SMH), which has Nvidia as its largest holding. He said semiconductor valuations still have room to fall and expects earnings across the fund's holdings to decline over the next couple of years.
He prefers shorting SMH over the iShares Semiconductor ETF (SOXX), arguing that SOXX has larger exposures to AMD and Broadcom, which he believes could benefit if Nvidia's market dominance weakens.
Burry also highlighted companies including Nebius, TSMC, ASML and CoreWeave, arguing that they benefited from Nvidia's market power and could face a changing competitive environment.
His bearish positioning comes amid reports of a US Department of Justice antitrust investigation involving Nvidia. Semafor reported that the DOJ is conducting multiple probes involving Nvidia and other companies, although there was no indication of planned criminal charges against Nvidia or Jensen Huang.
Super Micro Computer shares reportedly fell approximately 12% following the reports.
Nvidia is scheduled to report its quarterly earnings on November 17, adding another key event for investors to watch.
Key takeaway: Burry is increasing bearish bets on the Nasdaq 100 and semiconductor sector, citing stretched valuations, earnings concerns and potential regulatory pressure on Nvidia. His positioning signals caution toward the AI trade, but does not establish that a broader semiconductor downturn is inevitable.