Burry Replaces Shorts with Puts as AI Bubble Concerns Mount

Michael Burry has repositioned his portfolio after conducting research over the weekend. The investor, known for his role in 'The Big Short,' believes that an AI bubble may burst sooner than later.

Burry covered his short positions in Micron (MU), Nebius (NBIS), Caterpillar (CAT), iShares Semiconductor ETF (SOXX), CoreWeave (CRWV), Nvidia (NVDA), and Palantir (PLTR). He replaced these common-stock shorts with put options across several names, extending into 2027.

Better leverage was a key motivation for Burry's repositioning. 'Fundamentally, I am moving timelines up,' he said, which makes leverage more palatable. Put options allow him to achieve this leverage.

Burry added a new short position in MetLife (MET), initiating LEAP puts several years out at $70s. He covered his Oracle (ORCL) short and replaced it with December 2027 expiry puts at strikes in the mid-double digits.