Famed short-seller Michael Burry is unveiling his top market holdings, making a contrarian bet on software names at a moment when the sector is widely feared to be under existential threat from AI.
In a Substack post, Burry says that the sell-off in software is being driven by mounting pressure in private credit rather than widespread fears about AI disruption, reports the macro analysis X account The Assembly.
According to Burry, AI disruption fears are overblown, and none of his software picks rely on private credit. Data shows that Burry is accumulating more shares of Salesforce (CRM), a software name that’s down over 30% year-to-date. He is holding the healthcare SaaS firm Veeva Systems (VEEVA), Autodesk (ADSK) and Adobe (ADBE).
According to Burry, Autodesk has a software design moat, while Adobe is a bet that AI disruption fears are unhinged from the stock’s fundamentals.
On top of software stocks, Burry is also getting exposure to payment firms. He allocated 3.5% of his portfolio to PayPal (PYPL) at $49.38, while holding Fiserv (FISV), noting that the firm is a high-quality payments infrastructure.
He is also adding positions in Morgan Stanley Capital International (MSCI), which is another financial infrastructure play.
The update comes as Burry revealed in November of last year that he placed a nearly $1.1 billion bearish bet on Palantir (PLTR) and Nvidia (NVDA), believing that the AI trade is in a bubble. He also accused mega-cap tech firms of overstating average earnings to the tune of $226.6 billion.
Burry appears to think mega-cap tech names are overpriced, while others in the tech sector are offering golden opportunities to investors following the correction.
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