'Big Short' Michael Burry revealed fresh bets against Tesla, Nvidia, Caterpillar, and a chip index - Business Insider

Michael Burry, known for his role in 'The Big Short' and the 2008 financial crisis prediction, has revealed new short positions against Tesla, Caterpillar, NVIDIA, and the semiconductor sector through... Read original →

Michael Burry’s intensified short on SOXX signals a technical correction to AI chip euphoria. Investments in 3nm and EUV tools are nearing physical and economic limits, while AI infrastructure demand has been front-loaded, risking a cliff in orders for equipment makers like Applied Materials. A capital expenditure pullback would ripple through advanced packaging capacity in Taiwan, China and Korea, dragging down upstream materials and inspection suppliers. Regulatory pushes for onshoring—via U.S. and EU subsidies—are ironically fueling redundant capacity; any demand slowdown will saddle firms with massive idle costs. TSMC and Samsung may delay 2nm ramps, giving Intel a window to rebuild client trust. Over the next 12–24 months, expect brutal consolidation: second-tier chip designers exit first, equipment delays become routine, and SOXX constituents face a 30%+ valuation reset. Burry isn’t just betting on a crash—he’s warning that AI compute is replaying the 2000 optical networking overbuild.