Watch Desk posted an update
Michael Burry says almost all his short exposure is now in put options on the Nasdaq-100 and the VanEck Semiconductor ETF, according to Benzinga. The options expire in 2027 and are roughly 20 per cent out of the money, Burry said in a Sunday Substack post.
Why it mattersThe semiconductor fund has 19.6 per cent of its portfolio in Nvidia, with TSMC and AMD taking it to 34.5 per cent combined. That makes Burry’s position a pointed wager against a basket heavily exposed to the AI chip boom, not just a general warning about overheated markets. Burry argues a significant market top could arrive within nine months. That is his forecast, not evidence that chip demand is turning. If AI investment and chipmakers’ earnings keep growing, his bet could look rather less prophetic.
Discuss: When weighing Burry’s bearish bet, should investors focus more on the concentration of AI chip stocks in the fund, or on whether AI spending and chipmakers’ earnings are still growing?
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