Burry Adds Nasdaq-100 Puts and Deepens Bearish SMH Position

Investor Michael Burry added put options tied to the Nasdaq-100 Index (NDX) and increased his bearish position in VanEck Semiconductor ETF (SMH), arguing that semiconductor valuations could fall further and earnings could decline over the next couple of years.

In a Nov. 12 update, Burry said Nvidia’s influence over AI infrastructure and semiconductor companies could weaken. He identified Broadcom and Advanced Micro Devices (AMD) as potential beneficiaries if Nvidia’s market power fades, while companies tied to Nvidia’s AI infrastructure and semiconductor business could lose advantages linked to its influence.

Burry prefers SMH for bearish exposure over iShares Semiconductor ETF (SOXX), which he considers a decent but less attractive alternative. The move follows Burry’s Nov. 5 reduction of his SMH puts, when he cut that position by 25% and described the remaining contracts as “very large.”