Michael Burry is doubling down on his cautious view of the artificial intelligence trade, increasing his bearish exposure to NVIDIA Corp (NASDAQ:NVDA) while expanding outright short positions in Micron Technology Inc (NASDAQ:MU) and the iShares Semiconductor ETF (NASDAQ:SOXX).
In his latest portfolio update, he added to his existing Nvidia put options — a bearish options strategy that profits if the stock declines. He also increased his short positions in Micron and SOXX and added more put options on the Invesco QQQ Trust (NASDAQ:QQQ), broadening his negative bet on AI-driven technology stocks.
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Unlike a direct short sale, buying put options does not mean Burry is shorting QQQ or Nvidia shares. Instead, it gives him the right to sell the stock at a predetermined price before expiration, allowing him to benefit from a potential decline while limiting his maximum loss to the premium paid.
ETF Investors in Focus
Burry’s latest moves put several of the market’s most popular AI and semiconductor ETFs under the spotlight.
His expanded short position in SOXX is a direct bearish wager on the U.S. semiconductor industry. The ETF holds roughly 30 leading chipmakers, including Nvidia, Broadcom, Inc (NASDAQ:AVGO), Advanced Micro Devices Inc (NASDAQ:AMD), Qualcomm Inc (NASDAQ:QCOM) and Micron, making it a popular vehicle for investors seeking exposure to the AI hardware boom.
The VanEck Semiconductor ETF (NASDAQ:SMH) also stands out given its heavy allocation to Nvidia, the dominant player in AI chips. Meanwhile, the QQQ derives a large portion of its performance from mega-cap technology companies.
A Contrarian Bet Against a Winning Theme
Burry’s bearish positioning comes as semiconductor stocks continue to ride the AI wave.
Micron shares have surged around 200% year-to-date, fueled by soaring demand for high-bandwidth memory (HBM) chips used in AI servers. Nvidia has remained one of the biggest beneficiaries of the AI infrastructure buildout, while semiconductor ETFs have ranked among the strongest-performing fund categories this year.
The sector has also continued to attract investor capital. Semiconductor ETFs have pulled in about $46 billion in net inflows in 2026, equivalent to roughly 31% of their starting assets, highlighting investors’ continued confidence in the AI theme.
Should ETF Investors Take Notice?
Burry has built his reputation on making high-conviction contrarian calls, but his timing has often preceded market reversals by months or even years.
His latest portfolio update does not necessarily signal that the AI rally is nearing an end. However, it does underscore growing concerns about elevated valuations and concentration risk within semiconductor and technology ETFs, many of which rely heavily on Nvidia and a handful of other AI leaders for their returns.
For ETF investors, Burry’s moves are less a call to abandon AI than a reminder that one of Wall Street’s most closely watched bears is positioning for the possibility that the sector’s remarkable run could eventually cool.
Photo: Generated using artificial intelligence via Midjourney.
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