Michael Burry Profits from Semiconductor Stock Decline

Investor Michael Burry successfully bet against the semiconductor sector in July 2026, utilizing short positions and put options to profit from a market downturn. Burry first initiated a short position on the iShares Semiconductor ETF (SOXX) at approximately $643 on June 30, subsequently increasing his stakes at $536 on July 24 and $506 on July 30.

The SOXX index declined 21% over the following month, closing at $505 on July 31. Burry attributed the decline to the overextension of the Philadelphia Semiconductor Index and a high price-to-sales ratio. Beyond the ETF, he disclosed bearish bets against the Nasdaq 100 and individual chipmakers, including Nvidia and Micron.

Burry expressed skepticism regarding the AI boom, warning that hyperscalers are overspending on infrastructure that may soon become outdated. He asserted that the bullish chip trade has lost momentum and is starting to "look tired."