Burry Doubles Down on Nasdaq 100 Puts as Nvidia Leadership Shifts

what happened

Investor Michael Burry said in a Substack post that he has increased his bearish bets on the Nasdaq 100 and chip stocks. He said he doubled his puts on the index with an early 2027 strike roughly 20% below the market, and bought back 25% of a previously reduced put position on the VanEck Semiconductor ETF (SMH), expiring in June.

Burry argued that Nvidia-linked firms such as Nebius, TSMC, ASML and CoreWeave have long benefited from the chipmaker's market power, a dynamic he thinks may be changing after Huang's exit as CEO. He expects semiconductor valuations to fall further and sector earnings to decline over the next couple of years, and named Broadcom and AMD as possible beneficiaries.

why it matters

The signal matters less for one investor's positions than for what it says about sentiment: a prominent skeptic is betting on weakness in the AI-linked chip segment after a leadership change at Nvidia. Burry also repeated that conventional accounting earnings overstate the profitability of technology companies for existing shareholders, an argument that could shape how investors value the sector.

market impact

Nasdaq 100 and chips: bearish bets from a prominent investor add pressure on the sector

• ▼Nasdaq 100 pressure down — a prominent investor is increasing bearish bets on the index
• ▼Semiconductors (SMH) pressure down — bets on falling valuations and sector earnings

tags

instruments