Big Short Burry Shorts Semiconductor Sector, Says Rally Lacks Fundamental Support

Glonghui, April 25th｜Michael Burry, the legendary hedge fund manager and real-life inspiration for the main character in the movie "The Big Short," posted on Substack that he has established new short positions, buying put options on the iShares Semiconductor ETF (SOXX), and stated directly that the current rally lacks fundamental support. Burry bought SOXX put options with a strike price of $330, expiring in January 2027; he also established put option positions on Nvidia with the same expiry. The Philadelphia Semiconductor Index rose for the 18th consecutive trading day on Friday (24th), setting a record for the longest continuous increase ever. Burry noted that he knows the Philadelphia Semiconductor Index will fall back, and the old generation of semiconductor industry veterans know this as well. He stated that the current rally is largely driven by technical factors. Amid large-scale data center expansion, the narrative of chip supply shortages is extremely strong. He said that if he currently held long positions in semiconductor stocks, he would choose to sell.