Michael Burry Adds To NVDA, QQQ Puts, Warns AI Trade Resembles Dot-Com Bubble — ‘Pattern And Level Is Closer Than Numbers Alone Suggest’

• Burry added to his Nvidia January 2027 puts at a strike price of $115, and March 2027 puts at a strike price of $125.
• He also added to his QQQ puts for January 2027 at a strike price of $550, while loading up on SOXX puts at a strike price of $330 for January 2027.
• Burry’s addition of puts on Nvidia, QQQ, and the iShares Semiconductor ETF comes amid a soaring rally in several chip stocks, including Intel, AMD, and SanDisk, among others.

Michael Burry has warned that the ongoing surge in semiconductor stocks, driven by the artificial intelligence boom, echoes the dot-com boom that peaked in 2000.

“The Big Short” investor also doubled down on his puts on Nvidia Corp. (NVDA), the iShares Semiconductor ETF (SOXX), and the tech-heavy Invesco QQQ Trust (QQQ) ETF.

In his Substack post on Wednesday, Burry compared the ongoing semiconductor rally to the dot-com era boom, overlaying the Philadelphia Semiconductor Index from 1996-2000 with its performance since 2022 to highlight similarities between the two runs.

“The chart reveals the pattern and level is closer than numbers alone would suggest,” Burry said.

Burry’s Puts On NVDA, QQQ, SOXX

Burry stated that he has added to his Nvidia January 2027 puts at a strike price of $115 and March 2027 puts at a strike price of $125.

He also added to his QQQ puts for January 2027 at a strike price of $550, while loading up on SOXX puts for January 2027 at a strike price of $330.

INTC, AMD, SNDK Stocks Rally On AI Demand

Burry’s addition of puts on Nvidia, QQQ, and the iShares Semiconductor ETF comes amid a soaring rally in several chip stocks, including Intel Corp. (INTC), Advanced Micro Devices Inc. (AMD), and SanDisk Corp. (SNDK).

AMD shares ended 19% higher on Wednesday to close at a fresh 52-week high following the company’s blowout first-quarter (Q1) earnings. AMD CEO Lisa Su said in an interview that AI agents are driving a “tremendous demand” for compute.

Shares of Intel continued to rally on Wednesday, extending the one-month surge to about 123% amid reports that Apple Inc. (AAPL) is considering using the chipmaker’s foundries based in the  U.S. for processors for future iPhones and Macs.

Micron Technology Inc. (MU) shares closed 4% higher on Wednesday after the company announced a new product earlier this week aimed at data centers.

The broader chip stocks rally has also helped the iShares Semiconductor ETF surge by more than 66% this year so far.

AMD Performance Turns Wall Street Bullish

AMD’s blowout Q1 results resulted in a slew of price target hikes from Wall Street.

According to TheFly, TD Cowen hiked its price target for AMD to $500 from $290 while keeping a ‘Buy’ rating. The firm cited AMD's doubling of its CPU TAM forecast, issued six months ago, as the reason for its bullish outlook.

JPMorgan hiked its price target for AMD to $385 from $270, stating that the chipmaker’s Q1 performance shows that a structural inflection is underway across the server CPU and data center accelerator growth trajectories.

Analysts at Jefferies echoed similar sentiments, stating that the CPU market narrative has meaningfully strengthened. The firm hiked its AMD stock price target to $415 from $300, while keeping a ‘Buy’ rating.

Also See: DIS Stock Notches Its Best Single-Day Gain In A Year As It Eyes Double-Digit Earnings Growth In FY27

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