Michael Burry, 'The Big Short' Investor, Bets Against AI Again: Increases Short Positions on Nvidia, Micron, SOXX, Warns AI Demand Is a 'Financing Mirage'

Michael Burry, the investor immortalized in the film 'The Big Short,' has once again expanded his short positions on semiconductor stocks, while maintaining bearish bets on Tesla (TSLA-US) and Palantir (PLTR-US). His public disclosure of new trading moves amid growing skepticism over AI-related stock valuations has reignited interest in his bearish logic.

On Saturday (25th), Burry revealed his latest trading activity through his personal Substack column. The post shows he has further increased short positions on Micron Technology (MU-US), Nvidia (NVDA-US), and the iShares Semiconductor ETF (SOXX-US), while opening a new short position on heavy machinery giant Caterpillar (CAT-US).

According to the disclosure, Burry shorted Micron again at $933.86 per share, added to his Nvidia short at $210.28, and expanded his SOXX short at $535.83.

He specifically noted that when combining his SOXX short with related put options, this has become one of the largest positions in his overall investment portfolio.

Core Argument: AI Demand Built on a 'Circular Financing' Mirage

On the rationale for his short bets, Burry’s language is strikingly direct.

He argues that Nvidia’s current and projected massive order demand is not driven by real end-user purchases, but rather a mirage 'circularly stacked' through off-balance-sheet financing arrangements that are inadequately disclosed.

In other words, Burry believes a significant portion of Nvidia’s future revenue will depend on such circular financing. To support this view, he cited relevant content from the 2026 annual report of the Bank for International Settlements (BIS).

Notably, this is not the first time Burry has targeted Micron. Previously, he shorted the stock at $1,051.87, stating he clearly understands 'how this script will ultimately end,' while simultaneously opening five additional short positions.

Overall, Burry’s bearish logic on AI-related stocks is rooted in fundamental skepticism about the industry’s 'real demand.'

He believes the current AI infrastructure investment frenzy involves massive capital expenditures that do not necessarily correspond to actual end-user demand, but instead are self-amplified through opaque financing structures, creating systemic overvaluation risks.

Earlier, he predicted the semiconductor sector could face about a 30% valuation correction, viewing capital expenditure expansion plans announced by Samsung and SK Hynix (SKHY-US) as early signals of the semiconductor cycle turning 'from peak to decline.'

Maintains Short Bets on Tesla and Palantir, Holds QQQ Puts

Regarding existing short positions, Burry said he has not yet covered his Tesla short, describing the position with a slightly casual tone as 'slowly shrinking on its own,' implying that falling Tesla stock prices have naturally reduced the notional size of his short, rather than him actively reducing it.

He continues to short Palantir and maintains put options on the Invesco QQQ Trust, Series 1 (QQQ-US), signaling his continued cautious, even bearish, stance on the broader tech stock market.

Looking at year-to-date stock performance, some of Burry’s short bets have faced strong headwinds. Micron has surged nearly 200% year-to-date, while Nvidia is up about 10%.

In contrast, Palantir and Tesla have each fallen over 30%, down approximately 34% and 33% respectively, aligning with Burry’s bearish outlook.

While Shorting AI, Shifts Funds to Sports Betting and Healthcare Stocks

Interestingly, while aggressively shorting AI概念股, Burry is simultaneously building long positions, notably in the sports betting sector.

He bought a 'substantial amount' of Flutter Entertainment (FLUT-US) shares at $100.72 and added to his position in U.S. digital sports entertainment and betting company DraftKings (DKNG-US) at $23.07.

Burry described these two positions as, in a way, a bet on the 'prediction market' theme. Combined, they now constitute one of his larger long positions.

In addition, he increased his stake in healthcare insurer Molina Healthcare (MOH-US) at a purchase price of $197.02.

This long-side positioning stands in sharp contrast to Burry’s pessimistic stance on the AI infrastructure bubble. As market capital flows heavily into AI-related hardware and infrastructure, Burry is redirecting part of his capital toward consumer and healthcare stocks, which have lower correlation with the tech boom—revealing his overall assessment of current structural market risks.