Michael Burry Shifts To Long-Dated AI Bets As SOXX Suffers Its Worst Quarter Since 2025
Key takeaways
- Burry’s switch to long‑dated puts on SOXX and chip names signals a growing concern that AI efficiency could erode the semiconductor boom, even as some data suggest continued demand.
- SOXX fell 11% in Q3
- SOXX assets $48.4 billion
- SOXX trailing P/E ~68
What happened
Michael Burry has shifted his bet against the AI boom from outright short positions to long‑dated put options, most notably on the iShares Semiconductor ETF (SOXX) and several chip names such as Nvidia, Micron (MU), Palantir, Nebius and Oracle. He replaced his SOXX short with September 2027 puts struck in the low $400s, citing growing confidence that the AI bubble could burst sooner than later.
Why it matters
Burry’s move signals a change in sentiment among a high‑profile investor who previously championed AI‑related growth. The shift to long‑dated puts suggests he now believes the semiconductor sector’s valuation may be overextended, especially as SOXX fell 11% in Q3—its weakest quarterly performance since March 2025.…
Short-term and longer-term
Short-term. Traders should watch the September 2027 expiration for any price swings in the underlying ETFs and stocks, as the puts will become more valuable if the market stays cautious.
Longer-term. For investors, Burry’s bet underscores a fundamental uncertainty about the sustainability of AI‑driven chip demand.