Michael Burry stirred the markets on July 30 with his latest portfolio update, shared via his blog. The figure famed for foreseeing the 2008 housing crash doubled down on bearish wagers against artificial intelligence stocks while increasing his stakes in consumer and healthcare sectors.
Instead of trimming holdings, Burry focused on scaling up. He notably expanded short positions in Nvidia and Micron, entering at around $880 and $506 per share respectively. His Semiconductor ETF (SOXX) short also saw fresh additions near $506. This move closely follows a recent disclosure of a $186 million bet against Nvidia, highlighting persistent skepticism toward AI-related semiconductors.
On the bullish side, Burry grew long positions in companies that have fallen sharply but now appear undervalued to him. DraftKings shares were acquired near $23.4, Zoetis at $76, and Lululemon around $118, with the latter two described as 'full positions' indicative of conviction. Meanwhile, Tesla and Palantir holdings remained untouched, maintaining an existing exposure to these high-profile growth names.
Market sentiment contrasts sharply with Burry’s outlook. Despite recent downturns, Micron and Nvidia carry strong buy ratings among retail investors according to TipRanks, while Lululemon maintains a neutral 'Hold' consensus. The shifts underline a broader debate over the future of AI stocks and the semiconductor sector in particular.
Burry referred to DraftKings and Flutter as 'larger positions' and sees his moves as a turnover of assets into more capable hands. His actions reflect a deepening doubt about the AI boom, even as sectors like data centers continue to attract massive investments, evident from companies like Ecolab committing $7 billion to sustain AI infrastructure efficiently.
This content is for informational purposes only and does not constitute financial advice.
