Burry Bets Against AI
Investor Michael Burry Replaces AI Short Positions With Long-Dated Put Options
Anonymous
Investor Michael Burry has replaced short positions in several AI-linked stocks and funds with put options, saying he is advancing the timeline of his bearish bet and sees a chance the AI bubble could burst sooner than expected. The reported changes include puts on Micron, Nebius, the iShares Semiconductor ETF and Palantir, with additional reported positions involving Nvidia, Caterpillar and Oracle; he also disclosed a new bearish position in MetLife. Burry says options offer greater leverage at relatively low cost amid subdued volatility, while some changes also reflect tax considerations. His concerns include AI businesses’ reliance on unproven revenue to justify heavy investment and the prospect that memory-chip capacity growth in China could renew cyclical pressure.
Key Points
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Burry said he had covered his common-stock shorts in Caterpillar, CoreWeave and Nvidia as well as in the names already detailed elsewhere; he replaced the Caterpillar position with December 2027 puts around a $400 strike and the Nvidia position with September 2027 puts in the mid-$100s.
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Burry opened a new short position in MetLife using long-dated puts expiring several years out, with strike prices in the $70s.
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He also covered his Oracle short and replaced it with put options expiring in December 2027, with strikes in the mid-double digits.
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Burry had already increased his short positions against Micron, Nebius and the SOXX semiconductor fund earlier in the month, before announcing the shift to options.
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