Michael Burry Ramps Up SOXX Short After 21% Drop on Overvaluation Fears
Updated
Updated · Business Insider · Aug 4
Michael Burry Ramps Up SOXX Short After 21% Drop on Overvaluation Fears
3 articles · Updated · Business Insider · Aug 4
Summary
$506 marked Michael Burry's latest move on July 30, when he said he increased his short against the iShares Semiconductor ETF after already adding at about $536 six days earlier.
SOXX had fallen 21% from roughly $643, where Burry said he first shorted it on June 30, to a July 31 close of $505, validating his bearish call over the past month.
Burry tied the trade to stretched chip valuations, saying the Philadelphia Semiconductor Index was at its most overextended since 2000 and carried a price-to-sales ratio above 16.
His refreshed put options expire in March 2027 with strike prices in the low-to-mid $400s, signaling he expects further downside even after July's worst semiconductor-stock slide since 2008.
The bet fits Burry's broader skepticism on the AI boom, which he says is being inflated by hyperscalers' chip spending and by contracts among companies such as Nvidia and OpenAI.