Burry Bets Big on Tech Downturn, Sees Nvidia Valuations as 'Stretched'
Michael Burry, known for his accurate predictions in the past, has made another bold bet. He has increased his bearish bets on the semiconductor ETF (SOXX), and added new downside bets on the Nasdaq-100 (QQQ) and Nvidia (NVDA). The Nvidia put position is a significant move, as Burry believes the company's valuations are stretched. In fact, he mentioned that Nvidia's gross margins will contract by 1500 basis points and growth will shrink to near zero over the next four years.
Burry also shorted Palantir (PLTR) at $147 before its earnings announcement on Monday. He expressed concerns about the company's business model and CEO Alex Karp's high spending on private jets. Despite a 2% fall in PLTR stock, Burry remains bearish on the company.
The chip stocks rebounded sharply in April, with SOXX gaining over 40% in its best month on record. However, Burry believes that this rally is unsustainable and has set his bets to expire in 2027. He stated, 'Even the logarithmic chart looks stretched. What a rally, a true cherry on top of a decade+ explosive run… I am happy being short every single one of those names at current valuations and at this stage of the cycle.'