After Jensen's resignation, the "Big Short" doubles down on shorting tech stocks! Warns the AI boom may turn into a "bull trap"

Nvidia CEO Jensen Huang's resignation has cast a shadow over the outlook for tech stocks, as famed short-seller Michael Burry takes the opportunity to ramp up bearish bets, asserting that the AI boom is turning into a "bull market trap."

In a post on his Substack, Burry compared the October 6 high of the Nasdaq 100 Index this year to the peak preceding the internet bubble burst in March 2000, stating that he doubled his Nasdaq 100 put option position on November 12, as the index rebounded to 27,000 points. The options are set to expire in early 2027, and are currently about 20% out of the money. Meanwhile, he has rebuilt previously closed-out put option positions against the VanEck Semiconductor Index.

Burry's core view is that chip stocks and the wider tech sector will face significant corrections before mid-2027. Jensen Huang's sudden departure further reinforces his bearish thesis, as he directly advised investors to "exit," warning that the event would negatively hit Nvidia’s profit margins and growth prospects and trigger a chain reaction across the entire AI industry supply chain.

In his latest article, Burry referenced the Nasdaq 100’s short-term high on October 6, pairing it with the headline "Behold the bull-trap," suggesting that the market has unknowingly already peaked. He draws a direct analogy to the March 2000 dot-com bubble top, when tech valuations detached from fundamentals and were followed by years of systemic collapse.

In his November 12 post, Burry provided operation details—doubling his Nasdaq 100 put options while the index was rallying, with expiration set for early 2027 and the current strike about 20% out of the money. This indicates his prediction of a significant decline in the index from current levels by that time. He also stated that he remains "confident" in further semiconductor valuation declines and has re-entered put options on the VanEck Semiconductor Index.

News of Jensen Huang’s resignation has become the central focus in this week’s tech stock volatility, strengthening Burry’s bearish arguments. In his Substack commentary on the event, he directly suggested investors exit the market, citing concerns that management changes would drag down Nvidia’s profit margins and growth momentum.

In subsequent follow-up articles, Burry mapped out his anticipated "list of casualties," involving companies tightly linked with Nvidia and co-building and financing AI infrastructure. He specifically named emerging cloud services CoreWeave and Nebius—both major customers for Nvidia GPUs—as well as TSMC, which manufactures Nvidia’s high-end chips.

"This group has experienced dramatic volatility over the past month," Burry wrote:

"They have all benefited extensively from Nvidia’s market dominance and spillover resources, but this all now seems to be entering a new paradigm. The signal I’m seeking is for Nvidia’s market impact to weaken significantly."

It’s notable that Burry’s short-selling strategy has quietly shifted in recent months. According to disclosures in October, his bearish positioning has moved from targeted shots at individual stocks like Nvidia and Palantir to a much more macro focus—mainly via put options on the VanEck Semiconductor ETF.

This pivot has become even more pronounced since Jensen Huang’s resignation. With Nvidia and TSMC being the largest holdings in the VanEck Semiconductor ETF, uncertainty about both firms’ outlooks directly strengthens Burry’s conviction in shorting the ETF. His overall view remains unchanged: chip stock valuations are overstretched and are set for a major correction by 2027.