Investor Michael Burry has shifted his strategy regarding artificial intelligence stocks, replacing short positions with put options. He stated that recent weekend research led him to believe the AI bubble may burst sooner than his previous 2028 forecast. Burry noted that he is moving his timelines up and seeking more leverage in his short positions.
The reshuffle affects several companies, including Micron, Nebius, Nvidia, Palantir, Oracle, Caterpillar, and CoreWeave. Additionally, Burry has moved against the iShares Semiconductor ETF. He noted that put options currently appear inexpensive due to the low levels of the Cboe Volatility Index, which remains unusually tight.
The expiration dates for these new positions vary significantly. Puts for Micron and Nebius are set to expire in June, while those for Nvidia, Palantir, and the iShares Semiconductor ETF run until September 2027. Burry also initiated a new short position against MetLife using long-dated put options.
Burry cited a report from Ares Management as a key factor in his decision, which highlights that the AI boom depends on unproven revenue and sustained capital expenditure. Despite his outlook, the Nasdaq Composite recently reached a record high, and Nvidia continues to report a high production ramp for its AI technologies.
