Michael Burry Doubles Down On Nasdaq 100 Puts, Adds To Semiconductor Shorts As Nvidia Faces Scrutiny

What happened

Michael Burry said he doubled his Nasdaq 100 put position, using a rebound from the 27,000 level, and bought back 25% of a previously reduced put position in the SMH semiconductor ETF, expiring in June. He also said he expects semiconductor earnings to decline over the next couple of years.

Confirmed

Global impact / market context

Burry’s positions express a view that technology and semiconductor shares could fall: a put is an option that can gain value when an index or fund declines. If his earnings outlook proves right, weaker expected profits could pressure chip valuations and company financing plans.

Analyst inference

The article links the bets to a selloff in AI infrastructure stocks and scrutiny surrounding Nvidia, and reports Burry’s view that Nvidia’s influence may be weakening. Because Nvidia is SMH’s largest holding, pressure on its shares could weigh on that fund; AMD and Broadcom are named as possible beneficiaries.

Analyst inference

What to watch

1. Watch whether Burry reports further changes to his Nasdaq 100 puts or SMH position, including the stated June expiry for the semiconductor-fund puts. Analyst inference
2. Look for evidence that Nvidia’s influence over AI infrastructure suppliers is weakening, as Burry says he is watching for that change and names possible beneficiaries. Analyst inference
3. Track whether semiconductor earnings decline over the next couple of years, as Burry expects; weaker reported profits could affect valuations across the fund’s holdings. Analyst inference

Evidence

• stocktwits.com