Michael Burry, famed for his prescient bet against the housing bubble in The Big Short, scored again in July with a timely wager against semiconductor stocks.
In a June 30 Substack post, Burry revealed he had shorted the iShares Semiconductor ETF (SOXX) at around $643 and refreshed his bearish put options. By July 31, the ETF had plunged 21% to $505, marking its worst July performance in three decades.
Nvidia and Micron Among Targets of Burry’s Shorts
The fund tracks major chipmakers including Nvidia, AMD, Micron, and Intel. Burry argued the sector was dangerously overextended, citing the Philadelphia Semiconductor Index’s premium to its 200‑day moving average and a price‑to‑sales ratio above 16.
He labeled SOXX a “pure form of overvaluation” and rolled his puts to March 2027, signaling expectations of further declines.
Burry doubled down in late July, adding to his short positions at $536 and again at $506, saying the bullish chip trade looked “tired.” He has also disclosed bets against individual chipmakers and the broader Nasdaq 100.
While exact profits remain undisclosed, analysts like Larry McDonald praised the move, noting semiconductor ETFs suffered their steepest July losses in 30 years. Burry’s skepticism of the AI boom continues to shape his contrarian strategy.
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