Michael Burry believes the AI bubble 'may burst' sooner than he first believed
The famed short seller is switching to puts with expiries in June for his major tech short bets.
TL;DR
- Michael Burry is moving up the timeline for his bearish thesis on the AI boom.
- He is switching from short positions to put options for more cost-effective leverage over a shorter time horizon.
- Burry believes the AI bubble may burst sooner than later, with a potential flip by next summer.
- He has swapped shorts on Micron, Nebius, SOXX, and Palantir for put options with varying expiration dates and strike prices.
- He cited research emphasizing the precarity of relying on unproven AI revenues and increasing Chinese production capacity in memory chips.