'The Big Short' investor Michael Burry has intensified his bearish bets against AI-related stocks, including Micron Technology, while keeping his short positions on Tesla and Palantir unchanged. His logic for shorting the semiconductor sector is attracting increasing market attention.
Burry disclosed his latest portfolio moves in a Substack post on July 25, local time, revealing he has expanded his short positions on Micron Technology (MU), NVIDIA (NVDA), and the Philadelphia Semiconductor ETF (SOXX). He also initiated a new short position on Caterpillar.
He explicitly stated that a significant portion of current and future demand for NVIDIA is not driven by end customers but is instead cycled through off-balance-sheet financing arrangements, citing the Bank for International Settlements' 2026 annual report as supporting evidence. Meanwhile, his short positions on Tesla Motors (TSLA) and Palantir Technologies Inc. (PLTR) remain unchanged, and he continues to hold put options on the Nasdaq 100 ETF.
This disclosure comes as the semiconductor sector faces pressure. In previous reports, Burry stated that the capital expenditure plans announced by Samsung and SK Hynix for South Korea's semiconductor industry signal the "beginning of the end" for the sector's boom cycle. He anticipates a potential correction of approximately 30% in the semiconductor sector, arguing that valuations of AI infrastructure-related companies are severely inflated.
Expanding Shorts on Semiconductors: Micron, NVIDIA, SOXX All Increased
In his Substack post, Burry detailed a further short on Micron Technology at $933.86 per share, a short addition on NVIDIA at $210.28 per share, and a short increase on SOXX at $535.83 per share. He noted that the SOXX short position, combined with his put options, constitutes a large position within his portfolio.
Regarding the logic behind shorting NVIDIA, Burry was direct. He stated that a large amount of current demand is not driven by genuine end customers, and the financing for this demand is conducted off-balance-sheet and undisclosed. He claimed future revenue is "largely financed through circular arrangements," citing the 2026 Bank for International Settlements annual report as support.
Notably, this is not Burry's first time shorting Micron Technology. He previously shorted the stock at $1,051.87, stating he has a "fairly clear understanding of the final outcome" of such situations, while also adding five other short positions.
Burry's bearish view on the AI-related sector is based on questioning the authenticity of demand. He believes the current AI infrastructure investment boom involves significant capital expenditure not matched by real end-user demand but rather sustained by opaque financing structures, posing a systemic risk of overvaluation.
Previous reports indicated Burry predicts a roughly 30% correction in the semiconductor sector, viewing the capital expenditure expansion plans of Samsung and SK Hynix as the "beginning of the end" for the industry's boom cycle.
Regarding his existing short positions, Burry stated he has not closed his short on Tesla Motors, casually noting the position is "slowly shrinking" – implying that the stock's decline has naturally reduced the nominal size of the short. He also maintained his short on Palantir Technologies Inc. and continues to hold QQQ put options, indicating his bearish stance on the broader tech sector remains unchanged.
Based on year-to-date stock performance, some of Burry's short bets face pressure. Micron Technology has gained nearly 200% year-to-date, while NVIDIA is up about 10%. However, Palantir Technologies Inc., Tesla Motors, and DraftKings Inc. (DKNG) have all fallen more than 30% year-to-date, recording declines of roughly 34%, 33%, and 34% respectively, aligning with Burry's bearish direction.
Building Long Positions: Focus on Sports Betting
While shorting AI, Burry is also actively building long positions, with a focus on the sports betting sector. He purchased a "sizable" amount of Flutter Entertainment at $100.72 and bought DraftKings Inc. at $23.07.
In his post, Burry wrote: "Combined, FLUT and DKNG, as a bet on prediction markets, together constitute one of my larger positions." He also added to his position in Molina Healthcare, buying at $197.02.
This long positioning contrasts sharply with his short logic. While betting against the AI infrastructure bubble, Burry is directing capital into consumer and healthcare sectors with lower correlation to the tech boom, reflecting his overall assessment of the current market structure.
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