"The 'Big Short' continues to target AI! Michael Burry expands short positions in Nvidia and Micron, maintains shorts on Tesla and Palantir."

"The Big Short" Michael Burry once again increases his bets against AI-related stocks such as Micron, and maintains his short positions in Tesla and Palantir. His bearish logic on the semiconductor sector is attracting more and more market attention. On July 25 local time, Burry disclosed his latest positions in a post on Substack, showing that he further expanded his short positions in Micron Technology, Nvidia, and the Philadelphia Semiconductor ETF, and additionally opened a short position in Caterpillar. He made it clear that much of Nvidia’s current and future demand does not come from end customers, but is instead driven by off-balance-sheet financing arrangements, citing the BIS Annual Economic Report 2026 for support. Meanwhile, he is keeping his short positions in Tesla and Palantir unchanged, and continues to hold put options on the Nasdaq 100 ETF. This disclosure comes as the semiconductor sector is under pressure. According to a previous Wallstreetcn article, Burry has previously stated that the capital expenditure plans announced by Samsung and SK Hynix mark "the beginning of a downturn" for the semiconductor industry cycle, and he expects the semiconductor sector to face a roughly 30% correction, believing AI infrastructure-related company valuations are severely overestimated. Expanding semiconductor shorts: Increasing positions in Micron, Nvidia, and SOXX In his Substack article, Burry revealed that he further shorted Micron at $933.86 per share, increased his Nvidia short at $210.28, and added to his SOXX short at $535.83. He stated that, combined with his put options, the SOXX short constitutes a major position in his portfolio. When discussing the Nvidia short, Burry put it bluntly: the current high demand for Nvidia is not driven by real end-users; the financing for this demand is off-balance-sheet and undisclosed, and future revenue will be “largely financed through circular arrangements.” He cited the 2026 BIS annual report as his basis. Notably, this is not the first time Burry has shorted Micron. According to Wallstreetcn, Burry previously shorted Micron at $1051.87, saying he had a “clear understanding” of the likely outcome, and also added five other short positions. Burry’s bearish stance on the AI sector is based on questioning the authenticity of industry demand. He believes that in the current AI infrastructure investment boom, much of the capital expenditure does not correspond to true end demand, but instead relies on opaque, self-reinforcing financing structures, creating systemic overvaluation risks. A previous Wallstreetcn report said that Burry expects the semiconductor sector to face about a 30% pullback, and considers the capital spending expansion by Samsung and SK Hynix as the start of the sector's down cycle. Elsewhere, on maintaining previous short positions, Burry stated that he “has not closed out the Tesla short yet,” and in a casual tone said this position “is slowly shrinking on its own”—implying that Tesla’s price decline has naturally reduced his short position’s nominal size. He also maintained his Palantir short, and continues to hold QQQ puts, showing he remains bearish on the overall tech sector. Looking at price performance so far this year, some of Burry’s short bets have faced pressure. Micron is up nearly 200% year-to-date, while Nvidia is up about 10%. However, Palantir, Tesla, and DraftKings have each fallen more than 30% (about 34%, 33%, and 34% respectively), roughly in line with Burry’s bearish positions. While shorting AI, Burry is also actively building long positions, mainly in sports betting. He bought a “substantial amount” of Flutter Entertainment at $100.72, and bought DraftKings at $23.07. Burry wrote in his article: “Looking at FLUT and DKNG together, as a bet on the prediction market, the two combined represent one of my larger positions.” In addition, he increased his holding in Molina Healthcare, buying at $197.02. This long strategy contrasts sharply with his short logic—while betting against the AI infrastructure bubble, Burry is shifting his capital to the consumer and healthcare sectors, which are less related to the tech boom, reflecting his overall judgment of the current market structure. Risk Disclaimer The market presents risks. Investment should be approached with caution. This article does not constitute personal investment advice nor considers the specific investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investment decisions made based on this information are at one’s own risk.