Michael Burry Swaps AI Shorts for Put Options, Predicting Bubble Bursts by Next Summer
Updated
Updated · CNBC · Sep 28
Michael Burry Swaps AI Shorts for Put Options, Predicting Bubble Bursts by Next Summer
3 articles · Updated · CNBC · Sep 28
Summary
Put-heavy bets on Micron, Nebius, Palantir and the SOXX semiconductor ETF mark Burry’s shift from outright AI shorts to options, signaling he expects the trade to crack sooner than he previously thought.
Cheap volatility and a shorter timeline drove the switch: Burry said put options offer more cost-effective leverage, while some trades also helped reduce tax liability.
June expiries on Micron and Nebius, plus enlarged September 2027 puts on Palantir and SOXX, suggest he sees the AI turn arriving as early as next summer.
Ares Management research underpins the thesis, arguing AI revenue could fail to justify heavy capital spending and prompt boards to redirect capital away from current AI bets.
The call comes even as the Nasdaq closed at a record last week, though Micron remains 16% below its peak and Palantir about 10% off its all-time high.