Michael Burry's newest short reveals what really worries him about AI

Michael Burry’s newest short is rooted in concerns that AI hype is distorting not only chip makers but the broader market. Reported by The Wall Street Journal, the investor behind The Big Short disclosed bearish positions against Tesla, Nvidia, Caterpillar, Applied Materials, and the iShares Semiconductor ETF (SOXX), including put exposure to the Nasdaq 100 via QQQ. While the headline trade appears to be anti-AI, the basket targets what Burry views as overvaluation tied to AI’s spillover into electric vehicles, industrial equipment, and semiconductor equipment demand. The argument extends to SOXX itself, cited as a form of overvaluation in an index. The case is set against strong fundamentals, including Nvidia’s fiscal Q1 revenue of $81.6 billion and SOXX’s June 30, 2026 NAV at $640.65 and a 113% year-to-date return.