Burry Turns Bearish on Nvidia, Micron Amid AI Sector Concerns
Nvidia and Micron are two of the biggest beneficiaries of the AI wave, but Michael Burry is sounding the alarm on their overvaluation.
Burry's latest portfolio update shows he has bought put options for Nvidia (NVDA) and other semiconductor stocks, which gives him the right to sell these shares at a predetermined price before expiration. This allows him to benefit from a potential decline in value while limiting his maximum loss to the premium paid.
The VanEck Semiconductor ETF (SMH) is heavily allocated to Nvidia, making it a key player in the AI theme. Micron shares have surged around 200% year-to-date, fueled by soaring demand for high-bandwidth memory chips used in AI servers.
Burry's contrarian bet comes as semiconductor stocks continue to attract investor capital. Semiconductor ETFs have pulled in about $46 billion in net inflows in 2026, equivalent to roughly 31% of their starting assets.