{"id":84881,"date":"2023-11-15T12:16:23","date_gmt":"2023-11-15T17:16:23","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/why-big-short-investor-michael-burry-is-betting-against-nvidia-and-other-chip-stocks\/"},"modified":"2023-11-15T12:16:24","modified_gmt":"2023-11-15T17:16:24","slug":"why-big-short-investor-michael-burry-is-betting-against-nvidia-and-other-chip-stocks","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=84881","title":{"rendered":"Why ‘Big Short’ Investor Michael Burry Is Betting Against Nvidia and Other Chip Stocks"},"content":{"rendered":"
\n
<\/p>\n

<\/p>\n

<\/p>\n<\/figure><\/div>\n

Michael Burry has a new target\u2014semiconductor stocks. The famed The Big Short<\/em> investor looks to be narrowing his bearish call on U.S. stocks overall, down to one of the buzziest areas in the market.\u00a0\u00a0<\/p>\n

Burry\u2019s Scion Asset Management bought put options with a notional value of $47.4 million against the
\n iShares Semiconductor ETF
\n (ticker: SOXX), according to the firm\u2019s latest quarterly filing. A put is a bearish option that gives the holder the right to sell the security at a set price over a specified period. <\/p>\n

\n

It\u2019s a contrarian move at a time when semiconductor stocks seen as benefiting from investment in artificial intelligence have become market darlings. The third-biggest component of the
\n iShares Semiconductor ETF
\n is
\n Nvidia
\n (NVDA), while the two largest are
\n Advanced Micro Devices
\n (AMD) and
\n Broadcom
\n (AVG), all stocks that have surged this year on the AI excitement.\u00a0\u00a0<\/p>\n

The iShares Semiconductor exchange-traded fund has risen 48% this year through Tuesday\u2019s close and was up 1.1% on Wednesday. <\/p>\n

The put trade is in keeping with Burry\u2019s previous skepticism toward high-flying technology plays. He has bet against
\n Tesla
\n (TSLA) and tech investor Cathie Wood\u2019s flagship
\n ARK ETF
\n (ARKK) in recent years.\u00a0<\/p>\n

However, it\u2019s arguably also a more conservative stance from Burry than his previous bearish call on the market as a whole. The latest filing suggests he has closed out much larger broad-based put option positions tied to ETFs tracking the
\n Nasdaq 100
\n and
\n S&P 500,<\/span>
\n which Scion had announced during the prior quarterly filing released on Aug. 14.\u00a0<\/p>\n

While the outcome of the bet against semiconductor stocks is partly going to depend on AI, there are broader signs of fragility in the sector. A string of chip makers that serve the auto and industrial markets have warned of prolonged weak demand. <\/p>\n

Burry hasn\u2019t publicly commented on his latest moves and Scion didn\u2019t immediately respond to a request for comment.\u00a0Managers have 45 days to file the reports from the end of the quarter so it isn\u2019t clear if Scion still holds the position or how it has performed. The amount paid for the put option is likely to be much smaller than the notional value. <\/p>\n

Burry obtained mainstream fame after he was portrayed by Christian Bale in The Big Short<\/em> movie, following his bet against the housing market ahead of the 2007 subprime mortgage collapse. <\/p>\n

Write to Adam Clark at adam.clark@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Michael Burry has a new target\u2014semiconductor stocks. The famed The Big Short investor looks to be narrowing his bearish call on U.S. stocks overall, down to one of the buzziest areas in the market.\u00a0\u00a0 Burry\u2019s Scion Asset Management bought put options with a notional value of $47.4 million against the iShares Semiconductor ETF (ticker: SOXX), […]<\/p>\n","protected":false},"author":1,"featured_media":84882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-84881","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nWhy 'Big Short' Investor Michael Burry Is Betting Against Nvidia and Other Chip Stocks | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Michael Burry has a new target\u2014semiconductor stocks. 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