"Burry" increases short positions on the Nasdaq and semiconductor stocks, warning that the AI craze may be forming a new bull market trap

On November 12, "Big Short" Michael Burry doubled his bearish options position as the Nasdaq 100 index rebounded to around 27,000 points and re-established his bearish options position on the VanEck Semiconductor ETF, with the relevant options set to expire in early 2027.

Burry compared the peak of the Nasdaq 100 index on October 6 to the top of the 2000 internet bubble, believing that the current AI craze may be forming a new bull market trap, and predicted that chip stocks and the technology sector would experience a significant correction before mid-2027. In response to the departure of Nvidia CEO Jensen Huang, he advised investors to exit, believing that leadership changes could impact Nvidia's profit margins and growth prospects, affecting the entire AI infrastructure supply chain.

He also specifically mentioned Nvidia's important clients CoreWeave, Nebius, and the chip foundry TSMC, believing that these companies could be affected by a chain reaction. Burry previously disclosed his latest portfolio adjustments through Substack, recently increasing his holdings in PayPal, MercadoLibre, Sprouts Farmers Market, Adobe, JD.com, and Ero Copper, while also re-buying Lululemon.