Michael Burry Just Revealed His Next Big Short, and It's a Bet Against Nvidia, Micron, and AMD
Michael Burry of "The Big Short" fame is skeptical about the artificial intelligence infrastructure boom.
Overview
Michael Burry is famous for making a massive bet against the U.S. housing market in 2005, a few years before it collapsed and triggered the global financial crisis in 2008. He has since closed his hedge fund, Scion Asset Management, and now invests his own money whenever he identifies worthy opportunities.
Burry was very active in the stock market last week, opening a series of short positions against companies that operate in the artificial intelligence (AI) infrastructure space. Over the past few months, he used his social media and his Substack pages to voice skepticism about the sustainability of the AI spending boom, and he's now putting his money where his mouth is. By going short, he will profit if the underlying stocks or securities he's betting against decline in value.
Details
As of June 30, Burry was short the iShares Semiconductor ETF (NASDAQ: SOXX), an exchange-traded fund (ETF) that exclusively invests in companies selling the chips and components powering the AI boom. This position suggests he believes the entire semiconductor industry is overvalued, but is he right?
Source
Originally published at www.fool.com.