Michael Burry Bets Against Semiconductors and Nvidia, Adds Software and Payments Stocks

Scion Asset Management founder Michael Burry rose to prominence for shorting mortgage-backed securities ahead of the 2008 financial crisis. He believes the AI boom has inflated chip-stock valuations and that the rally lacks fundamental support. Burry has used put options to bet against Nvidia and the iShares Semiconductor ETF, or SOXX, while buying Microsoft, Adobe and PayPal shares in a wager that capital will rotate from hardware into software and payments.

On April 24, 2026, Burry disclosed on Substack that he had bought Nvidia and SOXX put options expiring in January 2027 with a strike price of $330. SOXX was trading at about $455, implying a decline of nearly 30%. Reports on July 3 said he had increased short positions in Nvidia, Tesla, Applied Materials, SOXX and Caterpillar; his entry price for Caterpillar was $1,060.98.