STOCKS | Michael Burry Doubles Nasdaq 100 Puts, Calls AI Boom a “Bull Trap”

Michael Burry doubled his bearish Nasdaq 100 options position and described the AI boom as a potential “bull trap” following Nvidia CEO Jensen Huang’s departure. According to Sina Finance, citing Wall Street News, Burry said he doubled the puts on November 12 as the index rebounded to 27,000; the options expire in early 2027 and were about 20% out of the money. Burry compared the Nasdaq 100’s October 6 high this year with the market peak before the dot-com bubble burst in March 2000. He said chip stocks and the broader technology sector could see a significant correction by mid-2027. Burry also reopened puts on the VanEck Semiconductor ETF after previously closing the position. He advised investors to exit, arguing that Huang’s departure could hurt Nvidia’s margins and growth prospects and affect companies across the AI supply chain. He named cloud providers CoreWeave and Nebius, both major Nvidia GPU customers, and TSMC, which produces Nvidia’s high-end chips, among the companies exposed. In October, Burry said his short positions had shifted from individual stocks including Nvidia and Palantir toward index-level bets, primarily puts on the VanEck Semiconductor ETF.