Key facts
- Michael Burry has shifted his bearish bet against AI stocks to index shorts.
- His current short positions are puts on the Nasdaq 100 (NDX) and the Van Eck Semiconductor ETF (SMH).
- Burry expects a significant market top within the next nine months.
- The VanEck Semiconductor ETF has Nvidia as its largest holding at 19.6%, followed by Taiwan Semiconductor (TSM) at 9.3% and Advanced Micro Devices (AMD) at 5.6%.
- Burry's bearish puts on the NDX expire in June 2027.
- He also holds puts on individual stocks including Oracle, Palantir, Met Life, and Caterpillar.
Michael Burry, the investor famous for his bet against the US housing market before the 2008 financial crisis, has detailed the evolution of his bearish stance on artificial intelligence-related stocks. Initially holding short positions on individual winning stocks like Nvidia and Palantir, Burry has now consolidated these bets into broader index shorts.
On October 11, Burry explained via his Substack that he has rolled his options positions into puts on the Nasdaq 100 index (NDX) and the Van Eck Semiconductor ETF (SMH). He views the latter as a concentrated bet on overextended semiconductor stocks, noting that Nvidia constitutes 19.6% of the fund, Taiwan Semiconductor (TSM) is at 9.3%, and Advanced Micro Devices (AMD) is at 5.6%. Other significant holdings in the ETF include Broadcom, Micron, Marvell, and Applied Materials.
Burry expressed his expectation of a "significant top" in the market within the next nine months, anticipating a potentially rapid price surge before the pullback he is eyeing. His bearish puts on the NDX are set to expire in June 2027, providing a roughly eight-month window for his thesis to materialize. He also continues to hold direct put positions against specific companies, including Oracle, Palantir, Met Life, and Caterpillar. Burry observed that volume continues to decrease as Palantir rallies, suggesting potential exhaustion in the shares.