The investor known for calling the 2008 housing market collapse is betting against one of the most crowded trades in the market while rotating into some of its most unloved corners.
In a new post on X, Michael Burry says he has placed more bearish bets against the iShares Semiconductor ETF (SOXX), which tracks the performance of AI hardware companies such as Nvidia (NVDA), AMD (AMD) and TSMC (TSM).
“Added SOXX downside.”
SOXX is trading at an all-time high of $482.
Burry’s move indicates that he believes the AI picks-and-shovels trade is overvalued at current levels.
At the same time, Burry is rotating into China, increasing exposure across three distinct names that together suggest a bet on a Chinese consumer recovery.
“Increased China exposure — Tencent, Meituan, Haidilao.”
Tencent is China’s dominant social media and gaming conglomerate, Meituan is the country’s leading food delivery and local services platform and Haidilao is a premium hotpot restaurant chain.
On the long side, Burry says that he has built his PayPal (PYPL) to a full position, while adding to Lululemon (LULU) again and doubling his stake in Australian online furniture retailer Temple and Webster.
He closes by hinting that the smart money is quietly positioning for a market pullback even as indices hit all-time highs.
“Short exposure remains elevated. Markets at highs. Positioning moving the other way.”
As of Tuesday’s close, the S&P 500 is trading at 7,259.
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