Michael Burry Increases Bets Against Nvidia and Semiconductor Stocks

Investor Michael Burry, who gained fame for predicting the 2008 financial crisis, is increasing his short positions on Micron, Nvidia, and semiconductor stocks in general, which have recently been under significant pressure and are falling sharply.

According to a report on the Stocktwits website, Burry wrote in a post on his Substack blog that he "shorted" more Micron shares at a price of $933.86 and increased his short position on Nvidia when the stock price was $210.28.

Burry's bet against Nvidia is not new. As early as last November, regulatory filings for his investment fund revealed that he had bet against the company and Palantir. He has claimed on several occasions in the past that Nvidia uses circular financing transactions to help fund some of its largest customers, which he believes could lead to a collapse similar to the dot-com bubble.

In addition to increasing his bet against Nvidia, Burry also increased his short position in the SOXX ETF, which tracks the broader semiconductor sector. He noted that his position on the SOXX, in addition to the put options he holds, represents a large total exposure. Earlier this month, The Wall Street Journal reported that he wrote:

"The SOXX ETF itself is a pure expression of overpricing in the index, in a way that is rare to see, and it has never been so easy to identify."

Burry also noted that he shorted more shares of construction equipment manufacturer Caterpillar, while leaving his existing short positions on Palantir and Tesla unchanged. Burry added that he has not covered his short position on Tesla, noting that it is "becoming smaller on its own."