Michael Burry (Trades, Portfolio) is sharpening a stark market divide, adding to beaten-down consumer, healthcare and gambling stocks while expanding bearish bets against Nvidia NASDAQ:NVDA, Micron Technology NASDAQ:MU and the broader semiconductor sector. The latest moves suggest the Big Short investor sees improving risk-reward outside technology but believes the artificial-intelligence trade has moved too far ahead of sustainable returns.
All buys and additions to positions, no sells, Burry said.
Burry increased his DraftKings NASDAQ:DKNG position at around $23.40 and added to Flutter Entertainment NYSE:FLUT, describing the gambling investments as a larger position. He previously argued that regulatory action could eventually reduce the competitive threat posed by prediction markets, which can offer sports contracts without facing the same state taxes and regulations as traditional sportsbooks.
He also added to Zoetis NYSE:ZTS at roughly $76 and Lululemon Athletica NASDAQ:LULU near $118, calling both full positions.
Like the two above, this is a basing/consolidation after a long fall, Burry wrote.
The Lululemon purchase is particularly contrarian. First-quarter Americas revenue fell 3%, operating margin declined 730 basis points and earnings dropped to $1.69 a share from $2.60. Management now expects full-year revenue to be roughly flat to down 1%, leaving Burry's thesis dependent on stabilizing domestic demand and recovering margins.
On the bearish side, Burry added Nvidia puts expiring in December 2026, QQQ puts expiring in January 2027 and short positions in Micron and the iShares Semiconductor ETF.
Investor Takeaway
Burry is betting against exceptional operating momentum, not weak businesses. Nvidia's latest revenue surged 85% to $81.6 billion, while Micron generated record quarterly revenue of $41.5 billion and guided for roughly $50 billion next quarter.
Investors should watch Nvidia's Aug. 26 earnings, Micron's memory pricing and HBM shipments, Lululemon's Americas sales and any regulatory action affecting prediction markets. Burry's puts also carry fixed expiration dates, making the timing of any AI correction nearly as important as its eventual magnitude.