Michael Burry Shorts Semiconductor Sector After 92% Rally Reverses
The investor who famously predicted the subprime mortgage crash has opened short positions against Nvidia, Micron, and the broader semiconductor industry, following a $1.3 trillion loss from record highs.
Michael Burry — the real-life inspiration for the main character in ‘The Big Short’ — has bet against semiconductor stocks just weeks after the sector posted blowout earnings. Samsung's chip division saw profits surge by several multiples, and Micron's annual revenue topped $40 billion, yet the top 20 semiconductor manufacturers shed $1.3 trillion in market capitalization over the following five weeks.
Burry's new positions include short wagers against Nvidia, Micron, and other industry bellwethers. The move comes despite persistent talk of a record chip shortage. The post raised questions about why stellar financial results failed to support share prices and why analysts' forecasts now diverge sharply.
The disclosure does not detail Burry's exact reasoning or position sizes. The investor gained fame for his prescient bet against the U.S. housing market before the 2008 financial crisis.
Source: ForkLog