Burry unveils broad short bets against AI and semiconductor leaders
Hedge fund manager Michael Burry disclosed a new wave of short positions on June 30, targeting major names tied to artificial intelligence and semiconductors, including Caterpillar, Nvidia, Applied Materials, the Philadelphia Semiconductor ETF, and Tesla. The trades, revealed through his own communications, point to a view that valuations across the AI ecosystem have stretched beyond fundamentals.
Focus on elevated valuations in AI-linked stocks
Burry opened a short against Caterpillar at $1,060.98 per share, marking his first bearish position in the company. The move follows an 86% surge in the stock خلال the first half of 2026, driven by its role as a proxy for global AI infrastructure demand. The rally pushed Caterpillar’s price-to-sales ratio to a near 30-year high and lifted its price-to-earnings multiple to around 53.
At the same time, he targeted Nvidia at $198.09, Applied Materials at $729.40, and the semiconductor ETF (SOXX) at $642.80. His argument centers on extreme technical and valuation signals. The Philadelphia Semiconductor Index has traded more than 65% above its 200-day moving average, a level historically associated with the peak of the 2000 internet bubble. Even excluding Nvidia, the sector’s price-to-sales ratio has climbed above 16.
Options positioning and rolling hedges
Transaction data shows Burry adjusted his bearish exposure by rolling SOXX put options from January 2027 to March 2027 while raising strike prices to just above $400. He also maintained put options on the Nasdaq ETF (QQQ) expiring in January, indicating a broader negative stance on high-growth equities.
Tesla short added ahead of key data
A new short position in Tesla was initiated at $416.22, shortly after the stock rose roughly 10% intraday to around $379.71 in the prior session. The move came just before the company’s expected second-quarter delivery report, with consensus estimates near 406,000 vehicles. Slower growth and lingering inventory imbalances remain key risks.
Sector rotation and concentration risks emerge
The semiconductor rally has been uneven, with gains broadening beyond Nvidia into memory and equipment firms such as Micron and Intel. This shift has helped drive roughly $2 trillion in added market value across AI-linked supply chain companies in a single quarter, while pushing the sector to about 20% of the S&P 500. The concentration underscores how heavily traders are positioned around a single theme.
Macro pressures add to downside case
Burry’s positioning comes as inflation concerns and the prospect of higher interest rates re-enter the market narrative. At the same time, the AI infrastructure boom is contributing to component shortages and rising costs, complicating the outlook. The combination of elevated valuations and tightening macro conditions forms the basis of his bearish stance.
Awaiting official confirmation
No Form 13F filing has yet confirmed the size or structure of these new positions. Full details, including leverage and exact exposure, are expected with Scion Asset Management’s next quarterly disclosure.
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