Michael Burry bets against AI chip makers amid valuation concerns

Investor Michael Burry, known for shorting the 2008 housing market, has expanded his short positions targeting the artificial‑intelligence chip sector. In a Substack post he disclosed bets against Micron Technology, Nvidia, Applied Materials and the iShares Semiconductor ETF (SOXX), as well as a put option on Tesla. Burry argues that AI‑related chip stocks are overvalued and could face a 30 % correction, citing the cyclicality of memory markets, excessive optimism around high‑bandwidth memory and inflated valuations of chip‑making equipment.

Burry’s thesis is based on historic volatility of memory prices, capital destruction at Micron and the broader hype surrounding AI infrastructure spending. Because he has withdrawn his fund from SEC reporting, his positions are known only from his own disclosures. The short bets have drawn attention from market observers who note that the targeted companies have seen large year‑to‑date gains, raising concerns about a potential downside for investors exposed to the AI chip rally.