Michael Burry Just Revealed His Next Big Short, and It's a Bet Against Nvidia, Micron, and AMD

Michael Burry, known for his 2008 housing crash short, has taken a bearish position against the iShares Semiconductor ETF (XSD), effectively betting against Nvidia (NVDA), Micron (MU), and AMD. The move targets a sector trading at a P/E ratio of 74.3—more than double the Nasdaq-100's valuation.

Burry's thesis centers on unsustainable AI infrastructure spending. He questions whether businesses will maintain current investment levels as they reassess AI capital expenditures. The semiconductor sector has been a primary beneficiary of the AI boom, with chips powering data centers and machine learning workloads. Burry now argues these valuations have overshot fundamentals.

The XSD ETF provides broad exposure to semiconductor manufacturers, making it an efficient vehicle for shorting the industry without targeting individual companies. The position puts Burry at odds with the consensus bullish view on AI-driven chip demand that has powered the sector's rally.