"The Big Short" Continues to Target AI! Michael Burry Expands Short Positions in NVIDIA and Micron, Maintains Shorts on Tesla and Palantir

"The Big Short" Michael Burry has once again increased his short bets on AI-related stocks such as Micron, while maintaining his short positions on Tesla and Palantir. His bearish logic on the semiconductor sector is garnering increasing attention from the market.

On July 25 local time, Burry disclosed his latest portfolio holdings in a Substack post, showing that he further expanded his short positions in Micron Tech, NVIDIA, and the PHLX Semiconductor ETF, while simultaneously adding a new short position on Caterpillar.

He explicitly stated that the substantial current and future demand for NVIDIA is not driven by end customers, but is cyclically driven through off-balance-sheet financing arrangements, citing the 2026 Bank for International Settlements Annual Report as evidence. Meanwhile, he kept his short positions on Tesla and Palantir unchanged and continued to hold put options on the Nasdaq 100 Index ETF.

This disclosure comes as the semiconductor sector faces pressure. Wallstreetcn article previously noted that Burry had stated that the capital expenditure plans announced by Samsung and SK Hynix in South Korea marked the "beginning of the transition from boom to bust" in the semiconductor industry cycle. He predicted that the semiconductor sector would face a correction of approximately 30%, believing that valuations of AI infrastructure-related companies were severely overinflated.

Expanding Semiconductor Shorts: Increased Bets Against Micron, NVIDIA, and SOXX

In his Substack article, Burry disclosed that he further shorted Micron Tech at $933.86 per share, increased his short position in NVIDIA at $210.28, and added to his short position in SOXX at $535.83. He stated that the short position in SOXX, combined with his held put options, now constitutes a large position within his portfolio.

Regarding his bearish thesis on NVIDIA, Burry was direct. He stated that the current substantial demand for NVIDIA is not driven by genuine end customers; the financing arrangements for this demand are off-balance-sheet and undisclosed, with future revenue "largely financed through circular arrangements." He cited the 2026 Bank for International Settlements Annual Report as supporting evidence.

Notably, this is not Burry's first time shorting Micron. Wallstreetcn articles reported that Burry had previously shorted Micron at $1,051.87, stating he had "a fairly clear understanding of the ultimate outcome of such situations," while also adding five other short positions.

Burry's bearish stance on AI-related sectors is built on doubts about the authenticity of industry demand. He believes that in the current AI infrastructure investment boom, a significant amount of capital expenditure does not correspond to real end-user demand but is self-perpetuating through opaque financing structures, posing a risk of systemic overvaluation.

Wallstreetcn article previously wrote that Burry expected the semiconductor sector to face a correction of about 30%, viewing the capital expenditure expansion plans of Samsung and SK Hynix as the "beginning of the transition from boom to bust" in the industry cycle.

Additionally, regarding his existing short positions, Burry stated that he has not closed his short position on Tesla, casually noting that the position is "shrinking on its own"—implying that the decline in Tesla's stock price has naturally reduced the nominal size of his short position. He also maintained his short position on Palantir and continued to hold QQQ put options, indicating that his bearish stance on the broader technology sector remains firm.

Judging by stock performance year-to-date, some of Burry's short bets have faced pressure. Micron has risen nearly 200% this year, and NVIDIA is up about 10%. However, Palantir, Tesla, and DraftKings have all fallen more than 30% this year, recording declines of approximately 34%, 33%, and 34% respectively, which largely aligns with Burry's bearish direction.

While shorting AI, Burry is also actively building long positions, focusing on the sports betting sector. He bought a "significant amount" of Flutter Entertainment at $100.72 and purchased DraftKings at $23.07.

Burry wrote in the article: "Viewing FLUT and DKNG together, as a bet on prediction markets, the two combined constitute one of my larger positions." In addition, he increased his holdings in Molina Healthcare, buying at $197.02.

This long positioning stands in sharp contrast to his short thesis—while betting against the AI infrastructure bubble, Burry has shifted capital into consumer and healthcare sectors with lower correlation to the tech boom, reflecting his overall judgment on the current market structure.