Michael Burry Increases Short Bets Against Nvidia, Micron and Chip Sector, Buys Two Fallen Stocks

The Quick Take

• Michael Burry has raised his short positions against Nvidia, Micron, and the broader chip sector
• Simultaneously, Burry has increased long positions in two unspecified stocks that have experienced sharp declines
• The Big Short investor's moves suggest a bet on a large sector rotation away from semiconductors toward distressed assets

Investor Michael Burry, known for his Big Short trade against the US housing market before the 2008 financial crisis, has increased his short positions against Nvidia, Micron Technology, and the semiconductor sector broadly, according to German financial publication FinanzNachrichten. Concurrently, Burry has added to long positions in two stocks that have experienced significant declines, suggesting a rotational bet in which semiconductor winners of the AI cycle revert while beaten-down assets recover. Burry's contrarian positioning in chips comes at a time when the sector is experiencing record valuations driven by AI infrastructure spending, CXMT's IPO, and sustained capex commitments from hyperscalers.

Short positions against Nvidia and Micron by a prominent investor typically draw significant market attention and create near-term sentiment pressure, even when the fundamental thesis takes quarters or years to play out. For European investors, Burry's move is particularly notable given the exposure of German institutional portfolios to tech-heavy indices including the Nasdaq. Micron is a direct DRAM competitor to CXMT, whose simultaneous IPO surge creates an interesting tension: Burry is shorting Western incumbents precisely as Chinese DRAM capacity enters the public market with fresh capital for expansion—a dynamic that may have informed the thesis.

Investors should watch Burry's next 13F filing for updates on position sizes and the identity of the two stocks he is accumulating on the long side. The macro variable is AI hyperscaler capex trajectory: any signs of cloud computing investment deceleration would validate Burry's semiconductor short thesis far more quickly than a gradual fundamental fade. Nvidia's next earnings report and guidance commentary on data center demand will be the near-term empirical test of whether the valuation premium the sector carries is justified by durable demand or positioned for disappointment.

Synthesized from 1 source.