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New York, July 5, 2026 – Michael Burry, the investor immortalized in The Big Short for predicting the 2008 housing collapse, has once again taken a contrarian stance.
This time, his target is the artificial intelligence and semiconductor boom that has propelled stocks like Tesla and Nvidia to dizzying heights.
In filings revealed this week, Burry disclosed substantial put option positions against several high flying names, raising alarms about whether the AI rally is sustainable.
Burry’s wagers include Tesla, Nvidia, Caterpillar, Applied Materials, and the iShares Semiconductor ETF (SOXX).
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His entry prices underscore the scale of his conviction, Tesla at $416.22, Nvidia at $198.09, SOXX at $642.80, Caterpillar at $1,060.98, and Applied Materials at $729.40.
The contracts extend into March 2027, giving him a long runway to profit if valuations collapse.
The timing of his move is telling. Nvidia has become the poster child of the AI revolution, with record revenues and insatiable demand for its advanced chips.
The Philadelphia Semiconductor Index has surged more than 100 percent this year, trading far above its 200 day moving average levels reminiscent of the dot‑com bubble.
Burry has warned that such parabolic rallies often precede sharp corrections, citing historical declines of 30 percent or more in similar cycles.
Adding to his skepticism, Burry pointed to South Korea’s announcement of a $515 billion chip investment plan as a late‑stage signal of overheating.
In his view, massive government commitments often mark the “beginning of the end” of speculative manias.
His shorts against Caterpillar and Applied Materials suggest he sees risks not only in chipmakers but also in the broader infrastructure boom tied to AI data centers.
Tesla’s rebound of 22 percent from April lows provided Burry with an entry point for his short.
Despite its recovery, he questions whether the electric‑vehicle giant can justify its valuation amid slowing demand growth and intensifying competition.
Nvidia, meanwhile, remains the crown jewel of the AI narrative, but Burry doubts whether future demand can match the market’s lofty expectations.
The risks of his strategy are clear. Shorting momentum‑driven stocks can be punishing if rallies persist.
Investor sentiment around AI remains euphoric, and government policies continue to fuel optimism.
Yet Burry’s track record of spotting bubbles lends weight to his warnings. His contrarian bets serve as a reminder that markets, no matter how exuberant, are not immune to gravity.
For now, Wall Street watches closely. If Burry is right, the AI boom could face its first serious reckoning.
If he is wrong, his shorts may become another cautionary tale of fighting the tide too soon. Either way, his move injects a dose of skepticism into a market narrative dominated by boundless optimism.
