Key Takeaways:
Michael Burry unveiled two new short positions against AI-involved technology stocks in an Aug. 6 Substack post, extending his bearish campaign against the sector.
"I continue to believe it is possible we are near a major top, and possible a 1987-type fall," Burry wrote in an Aug. 4 post, while noting the S&P 500's record run could draw fresh money into the market.
His existing book spans Nvidia, the iShares Semiconductor ETF (SOXX), Micron, Tesla, Palantir, Caterpillar and Applied Materials. His SOXX short, opened at about $643 in late June, returned 21% as the chip ETF fell to $505 on July 31. Nvidia closed at $206.64 on Monday, while Micron ended near $829.
Burry's Nvidia puts carry strike prices in the low $100s, far below the current price, and he added to the position in a July 30 update alongside increased Micron and SOXX shorts. He has questioned whether hyperscaler spending on AI infrastructure can be sustained, warning that circular financing between chipmakers and customers could buckle.
The bets put Burry against Wall Street's consensus. Jefferies analysts said Microsoft and Amazon's latest results offered evidence that AI investment produces tangible returns, while Morningstar values Nvidia at $280 and considers the shares undervalued. Micron presents the harder cyclical test: Bank of America's Vivek Arya expects memory to represent 35 percent to 40 percent of global cloud and AI infrastructure spending in 2027, even as Samsung, SK Hynix and China's CXMT expand capacity.
Burry deregistered Scion Asset Management with the SEC effective Nov. 10, 2025, ending his 13F filing obligations, and now discloses his personal portfolio through his "Cassandra Unchained" Substack. His positions lack the public verification of his filing era, though his 2008 housing call keeps investors attentive to his warnings about crowded trades.
The new shorts show Burry expects the AI trade to keep unwinding even as the broader market sets records. Investors will watch his next Substack update for position details and any move to cover his underwater Nvidia bet.
This article is for informational purposes only and does not constitute investment advice.
