Investor Michael Burry has adjusted his strategy regarding the artificial intelligence sector, shifting from direct short positions to put options. These new financial instruments target Micron Technology and Nebius Group and are set to expire in June and September 2027.
Burry’s put options on Micron have a strike price of approximately $500. Additionally, he holds positions on the SOXX semiconductor ETF with strike prices in the low $400s. These bets reflect his skepticism toward the broader semiconductor industry, including companies like Nvidia, Palantir, and Oracle.
The investor cites concerns over excessive capital expenditure in data infrastructure, noting that much of this spending is financed through debt. He referenced a report from Ares Management and comments from the CEO of Acer regarding memory supply equilibrium as key factors influencing his outlook.
Burry stated he is more confident than ever that a market correction for the AI sector will occur within a year. However, he acknowledges the risk associated with the timing of his options, as the trade will fail if the expected downturn does not materialize before the expiration dates in 2027.
