'behold The Bull-trap': Michael Burry Says He's Ramped Up Bearish Tech Bets

• Michael Burry's bearish bet on the tech-led bull rally has evolved this year.
• He's gone from betting against hot stocks to betting against the broader Nasdaq 100.
• Burry reiterates his view that chip stocks will fall in 2027, dragging the Nasdaq lower.

Michael Burry is growing his bearish bet against the tech-led bull market as Nvidia's troubles batter confidence in the AI trade this week.

Burry has doubled down on his thesis that chip stocks and the broader tech sector will be dragged down significantly by mid-2027, pointing to the early October peak in the Nasdaq 100 as a moment similar to the March 2000 high just before the dot-com bubble burst.

"Behold the bull-trap" he wrote in a Substack post, pointing to the October 6 high, which has faded amid broader volatility and Nvidia's woes in the last week.

"Today, I used the bounce off 27,000 to double my put position in the NASDAQ 100 at an early 2027 strike, approximately 20% out of the money," he wrote on November 12. He also added that he "remains confident" that valuations in the semiconductor space will decline, and that he added back put options in the VanEck Semiconductor index that he'd previously sold.

The Nvidia drama has only boosted Burry's bearish views on tech this week.

Burry responded to news of CEO Jensen Huang's resignation by warning investors to "get out" of their positions in the company, noting that it would likely negatively impact both its profit margins and growth.

In his follow up post, he said he sees a ripple effect for other tech companies with ties to Nvidia that are helping build and finance the AI boom. The list of victims he sees included neoclouds CoreWeave and Nebius, which are buyers of Nvidia GPUs, and Taiwan Semiconductor Manufacturing, which produces Nvidia's advanced chips.

"It has been a volatile month for the group," Burry stated. "All have benefitted greatly from NVIDIA's market power and largesse, which seems to have entered a new paradigm now. What I am looking for are signs in the market that NVIDIA's power is significantly lessened."

All this supports his overall thesis that chip stocks are overvalued and will fall in 2027. In October, Burry revealed that his bearish AI strategy has evolved to mostly betting against broader funds like the VanEck Semiconductor ETF after previously shorting individual stocks like Nvidia and Palantir.

Now that Huang's departure has clouded the outlook for Nvidia, Burry's conviction in his bet against the ETF has grown, as Nvidia and TSMC are its largest holdings.