Investor Michael Burry (Trades, Portfolio) disclosed new bearish positions against Tesla NASDAQ:TSLA, Nvidia NASDAQ:NVDA, Caterpillar (CAT), Applied Materials (AMAT) and the iShares Semiconductor ETF (SOXX), while also maintaining his negative position on the Nasdaq-100 through put options.
Burry, known for predicting the U.S. housing market collapse, said he rolled his put options on the semiconductor ETF into contracts expiring in March 2027 with higher strike prices. He argued semiconductor shares have become stretched following a sharp rally fueled by investor optimism around artificial intelligence spending.
The investor also said he initiated new short positions in Tesla, Nvidia, Caterpillar and Applied Materials, while keeping his existing bearish view on the broader technology sector. Burry wrote that the semiconductor index has reached valuation levels he considers historically elevated relative to its long-term trend.
Burry added that his overall bearish exposure has increased, though he continues to keep individual short positions relatively small. He has previously warned that heavy AI-related investment could eventually leave chipmakers and technology companies facing excess capacity and weaker returns.