The Big Short's Michael Burry ramps up short positions on Nasdaq and semiconductor stocks, warning the AI boom risks falling into a "bull trap".

"Big Short" investor Michael Burry doubled his put option positions on the Nasdaq 100 index on November 12, when the index rebounded to near 27,000 points, and re-established put option positions on the VanEck Semiconductor ETF, with the options set to expire in early 2027. Burry compared the Nasdaq 100's recent peak hit on October 6 to the top of the 2000 dot-com bubble, arguing the current AI boom may be forming a new "bull trap", and predicted chip stocks and the tech sector will see a significant correction before mid-2027. In response to NVIDIA CEO Jensen Huang's departure, Burry advised investors to "exit", noting the leadership change could hit NVIDIA's profit margins and growth prospects, and spill over to the entire AI infrastructure supply chain. He also named NVIDIA key clients CoreWeave, Nebius, and chip foundry TSMC, saying these firms could face knock-on impacts. BlockBeats reported yesterday that Michael Burry disclosed his latest portfolio adjustments via his Substack account, showing he recently added to positions in PayPal (PYPL), MercadoLibre (MELI), Sprouts Farmers Market (SFM), Adobe (ADBE), JD.com (JD) and Ero Copper (ERO), while re-buying Lululemon (LULU), indicating he continues to adjust his stock portfolio.