Michael Burry bets against AI giants and chip sector

Burry’s latest maneuvers include extending his bearish stance on the iShares Semiconductor ETF (SOXX) by purchasing put options that expire in March 2027. He set these at higher strike prices, targeting the low-to-mid $400 range. The move comes as the Philadelphia Semiconductor Index, which tracks major chipmakers like AMD and Intel, hits levels of extension not seen since the dot-com bubble. For Burry, the current pricing of these assets constitutes a rare and easily identifiable form of market excess.

Beyond chips, the investor maintains his long-standing short against the Nasdaq 100 while opening new positions against heavyweights Tesla and Caterpillar. He described his decision to short Caterpillar as surprising given his history with the stock, yet he maintains the current valuation lacks support from the underlying business fundamentals. Despite Caterpillar’s 167% surge over the past year—fueled by optimism surrounding AI infrastructure—Burry remains unconvinced by the rally. He noted that while his individual short positions remain small, their aggregate size has grown to a substantial portion of his portfolio, reflecting his conviction that a speculative bubble surrounds the current AI-driven market surge.