Michael Burry Is Short NVDA, AMAT, SOXX — Sees Big Korea Chip Spending As ‘Beginning Of The End’

• Chip stocks have dominated market attention as several names more than tripled in the first half of the year.
• Burry also disclosed short positions on Caterpillar and SOXX.
• Burry believes the latest chip rally, driven by South Korea’s large semiconductor investment plans, is the start of a downturn.

“The Big Short” investor Michael Burry on Tuesday said the semiconductor and AI-related stock rally has become extremely overvalued, similar to the dot-com bubble in 2000, and disclosed fresh short positions on Nvidia Corp., Applied Materials, Inc. and the iShares Semiconductor ETF (SOXX).

Chip stocks have dominated market attention as several names more than tripled in the first half of the year. The rapid expansion of AI data centers has fueled unprecedented demand for advanced chips and related components, powering a rally that has caught Wall Street by surprise. 

As valuations climb, investors are increasingly debating how much upside remains for the sector’s biggest winners. 

In a new Substack post, Burry said he started a short position in Nvidia at $198.09, Applied Materials at $729.40, and SOXX at $642.80. 

Chips Are Red-Hot, Set For Correction, Burry Says

“The Philadelphia Semiconductor Index is at a historically high extension above its 200-day moving average. A level not seen since 2000,” Burry wrote. “I rolled the SOXX Puts from Jan 2027 to March 2027, and moved from the low-mid $300s strikes to the low-mid $400s strikes. In doing so, I gained duration (tenor) at relatively cheap vol (price).”

Historically, similar setups have often been followed by 30% or larger declines in semiconductor stocks, Burry said.

The fresh Nvidia position is notable, for one, because the stock has underperformed of late. NVDA shares gained a mere 7.4% in the last six months, lower than the 9.6% gain in the benchmark S&P 500 index and way below SOXX. Burry first disclosed an Nvidia short position in May last year.

Still, Burry indicated that Nvidia may not be the primary driver of SOXX's red-hot valuation. “The price/sales ratio on the SOXX is very high, over 16x. It is not just Nvidia. Removing Nvidia from the SOX barely dents the price/sales ratio.”

Notably, Burry believes the latest rally, driven by South Korea’s large semiconductor investment plans, is actually a sign that the cycle is nearing its peak rather than just beginning. Burry also started short positions on Tesla and Caterpillar.

“The proximate cause of today’s rally is big spending announced out of Korea. Well, I see that as the beginning of the end.”

Burry’s latest trades as disclosed on June 30.

AMAT, NVDA, SOXX: How Does Retail Feel?

On Stocktwits, retail sentiment was ‘bullish’ for AMAT, ‘neutral’ for SOXX, and ‘bearish’ for Nvidia, as of late Tuesday.

SOXX rose 111% in the first half of 2026, with major constituents Intel and Advanced Micro Devices rising 278% and 171%, respectively. Memory stocks rallied further, with SanDisk emerging as the top S&P 500 gainer, up 856%, and Micron gaining 304%.

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