Investor Michael Burry Increases Short Bets Against Nvidia and Chip Stocks

Michael Burry, the investor known for predicting the 2008 financial crisis, has expanded his short positions against Micron, Nvidia, and the broader semiconductor sector amid recent sharp declines and significant market pressures. In a post on his Substack blog, Burry revealed he sold short additional Micron shares at $933.86 and increased his short position on Nvidia when its stock was priced at $210.28. This is not Burry's first wager against Nvidia; regulatory filings from last November showed his fund was already shorting Nvidia and Palantir. He has criticized Nvidia for using circular financing deals to support its largest customers, warning this could trigger a collapse similar to the dot-com bubble.

Beyond Nvidia, Burry also boosted his short position in the SOXX ETF, which tracks the semiconductor sector, combining this with put options to form a substantial bet against the sector. Earlier this month, he described SOXX as a clear example of overvaluation rarely seen and easy to identify. Additionally, Burry sold more short shares of Caterpillar but maintained his existing short positions on Palantir and Tesla. He noted he has not covered his Tesla short and remarked that the position "is shrinking itself." The semiconductor sector has seen increased trading volumes and volatility, with some analysts, including Jefferies, issuing positive recommendations for the Tel Aviv Stock Exchange amid these market shifts.