Updated
Updated · Yahoo Finance · Aug 5
Michael Burry Shorts Applied Materials on 1987-Style Crash Warning
Updated
Updated · Yahoo Finance · Aug 5

Michael Burry Shorts Applied Materials on 1987-Style Crash Warning

3 articles · Updated · Yahoo Finance · Aug 5

Summary

  • Applied Materials has drawn fresh scrutiny after Michael Burry reportedly took a short position in the semiconductor equipment maker as part of a broader bearish bet on large chip-linked stocks.
  • Burry tied that stance to a warning of a potential 1987-style market crash, framing the risk as a macro and liquidity shock rather than company-specific weakness.
  • Applied Materials sits near the center of AI and wafer-fab spending, so the short challenges a bullish narrative built on long-term demand for chipmaking tools, data centers and advanced computing.
  • The reported trade also underscores how elevated expectations for semiconductor names can amplify near-term price swings even when the longer-term industry outlook remains intact.

Insights

Will macroeconomic fears shatter Applied Materials' soaring valuation before its massive AI infrastructure investments pay off?
Could Michael Burry's crash warning derail the AI chip supercycle, or is he betting against an unstoppable force?