Michael Burry bets on copper while shorting AI and semiconductor stocks

Investor Michael Burry is shifting his investment strategy away from the artificial intelligence hype, opting instead for positions in copper and other sectors. Burry has expressed skepticism regarding the current AI boom, comparing the enthusiasm to the dot-com era and the mid-2000s housing bubble.

As an indirect play on AI infrastructure demand, Burry has taken a position in Brazilian copper miner Ero Copper. He anticipates a structural deficit in copper, noting that the lack of major new discoveries and the long lead times for new production could lead to significant price expansion as data center demand increases.

Simultaneously, Burry is increasing short positions on several technology-related assets. These include memory chip manufacturer Micron Technology, AI cloud company Nebius Group, and software firm Palantir. He is also shorting the iShares Semiconductor ETF (SOXX), predicting that the current scarcity in the memory chip market is temporary and will subside as production capacity increases.