Michael Burry Shifts AI Shorts Into June and September Puts

Michael Burry is moving bearish positions in several artificial intelligence-related securities into put options with June and September 2027 expirations, saying new research has accelerated his timeline for a potential reversal.

“Fundamentally, I am moving timelines up,” Burry wrote in his Sept. 28 investment newsletter. He said the changes provide greater leverage over shorter periods and reflect his view that the AI bubble may burst sooner than expected.

Burry replaced his Micron short position with puts with June expirations and strike prices in the $500 range. He also moved his Nebius short into June puts with strike prices in the double digits.

His short position in the iShares Semiconductor ETF (SOXX) was replaced with puts expiring in September 2027, with strike prices in the low $400s. Burry also replaced and rolled his existing Palantir short and put position into an enlarged put position centered on a September 2027 expiration, with strike prices in the low $100s.

Some of the changes were intended to reduce his tax liability, Burry said. Most reflected his belief that the AI trade could reverse earlier than expected.

The AI boom depends on sustained capital spending and revenue streams that have yet to be proven. One season of disappointing AI revenue could prompt several corporate boards to redirect capital toward whichever investment they view as offering the strongest conviction.

Burry had increased his bearish positions in Micron, Nebius and SOXX earlier in September. The memory-chip market also faces the prospect of renewed cyclicality as Chinese production capacity increases.

Burry said in May that equities resembled the final months of the 1999-2000 bubble. The Nasdaq Composite closed at a record during the week of Sept. 21, while Micron remained 16% below its record level and Palantir was about 10% below its all-time high.