Michael Burry, the investor famous for shorting the 2008 housing crisis, has extended his bearish position on semiconductor stocks by rolling put options on the SOXX semiconductor ETF from January to March 2027, citing extreme valuation metrics not seen since the dot-com era. The Philadelphia Semiconductor Index has reached record levels relative to its 200-day moving average, a phenomenon Burry argues occurred only during the 2000 bubble peak.
Burry has simultaneously opened new short positions across major semiconductor and technology players, including NVIDIA, Tesla, Applied Materials, and Caterpillar, alongside continued bearish exposure through the SOXX ETF. The contrarian bet reflects his conviction that the artificial intelligence and semiconductor rally has become unmoored from fundamental valuations, mirroring the irrational exuberance of two decades ago.
In a hedging move, Burry has simultaneously deployed capital into long positions in defensive and healthcare names including Novo Nordisk, Pfizer, Estee Lauder, Albemarle, and PDD Holdings, signaling a rotation toward lower-beta assets. The dual positioning suggests Burry is preparing for potential sector rotation rather than outright market collapse, maintaining exposure to selected equities while protecting against tech-heavy downside.