Michael Burry Shifts AI Short Positions to Put Options as Bubble Warning Intensifies

Michael Burry shifts AI stock shorts into put options on Micron, Palantir, Nebius and SOXX as he warns the AI bubble may burst sooner. Investor Michael Burry has moved his bearish positions in several artificial intelligence-linked stocks from direct short positions into put options, saying the AI bubble may burst 'sooner than later.' Coin Bureau highlighted the change in a post on X, citing Burry's latest positioning. The shift covers several securities tied to the AI and semiconductor trade, including Micron, Palantir, Nebius and the iShares Semiconductor ETF (SOXX). Burry said the move into put options gives him more cost-effective leverage over a shorter time horizon. Recent reports on his investment newsletter confirm that he has replaced short positions with puts and has moved forward the timeline behind his bearish AI thesis. Burry Targets AI-Linked Stocks With Put Options The strikes cited by Coin Bureau sit substantially below the current prices of the securities involved, reflecting the extent of the downside scenario embedded in the positions. Micron was trading near $1,054, compared with Burry's June put options around the $500 strike. Palantir was near $187, while his position was centered on September 2027 puts in the low $100s. Nebius was trading near $232 against June puts with strikes in markets the double-digit range. Burry also shifted his SOXX position from a short into September 2027 put options with strikes in the low $400s. Other reports on Burry's latest portfolio changes similarly describe June expirations for Micron and Nebius and September 2027 expirations for SOXX and Palantir. Shorter Timeline Drives Strategy Change Burry has used both short positions and put options in his bearish positioning, but his latest move places greater emphasis on derivatives. Put options allow a trader to position for a decline while limiting the maximum loss on the option itself to the premium paid, although their value is affected by factors including time and volatility. Burry has said that shorter timelines make greater leverage more acceptable and that relatively low volatility has made put options comparatively attractive. His latest repositioning therefore represents not simply a change in instruments, but also an acceleration of the timeframe attached to his bearish thesis. The investor has previously expressed concerns about valuations and the durability of the AI investment cycle. In earlier commentary, he questioned whether spending on AI infrastructure could ultimately be supported by sufficient revenue and pointed to the cyclical nature of the semiconductor industry. AI Bubble Warning Moves Into Options Market Burry's latest positions do not establish that an AI-driven market decline will occur, but they show how he is expressing his own bearish view through options rather than maintaining the previous stock shorts. The large gap between current share prices and the cited strike levels also means financial the positions are structured around a substantial decline in the targeted securities. Coin Bureau interpreted the changes as positioning for a sharp reversal in AI-related stocks as early as next summer. For now, Burry's stated view is that the AI bubble may burst 'sooner than later,' while the June and September 2027 expirations provide the specific time horizons attached to several of his new put positions. Technology & Blockchain Writer Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy. She prioritises clarity and accuracy when explaining technical developments to a general audience.