Key facts
- Michael Burry has initiated new short positions against Tesla, Caterpillar, Nvidia, and Applied Materials.
- He has also adjusted his bearish stance on the iShares Semiconductor ETF (SOXX) by purchasing put options with March 2027 expiration.
- Burry believes the semiconductor index is significantly overvalued, comparing its current state to the dot-com bubble.
- He expressed concern that major companies are overinvesting in microchips that will soon become obsolete.
- Burry indicated that his overall short positions have increased significantly.
Michael Burry, the investor famous for predicting the 2008 financial crisis, has revealed a series of new bearish bets against major technology and industrial companies, as well as a key semiconductor index. In a Substack post, Burry detailed his updated short positions, which include wagers against Tesla, Caterpillar, Nvidia, and Applied Materials.
Burry also refreshed his bet against the iShares Semiconductor ETF (SOXX), now holding put options expiring in March 2027 with strike prices in the low-to-mid $400s. This follows a significant rally in the SOXX, which has roughly quadrupled since April of the previous year and doubled in the last six months, driven by investor enthusiasm for the AI boom.
He highlighted that the Philadelphia Semiconductor Index, which SOXX tracks, is exhibiting extreme valuation levels not seen since the dot-com bubble. Burry expressed particular surprise at shorting Caterpillar, a company he has historically benefited from, stating that its current valuation is not supported by its underlying business. He also noted that Tesla shares have recently rallied to a level he finds amenable for his short position.
Burry suggested that recent spending announcements by chip manufacturers like Samsung and SK Hynix would further inflate the 'parabolic' semiconductor equipment stocks. He indicated that his overall short positions have grown to a substantial size, positioning him increasingly against the broader market, as he continues to warn of a speculative bubble driven by overinvestment in AI and microchips.