Michael Burry has increased his short position against Nvidia and expanded put positions across the semiconductor sector, according to July 2026 disclosures. His argument targets how hyperscalers depreciate the chips they buy — schedules he says outlast the hardware itself.
Michael Burry is adding to his short position against Nvidia, building on put options his Scion Asset Management first disclosed in late 2025. The investor who became a household name by correctly predicting the 2008 housing crash has broadened the same bearish thesis across the entire semiconductor space.
Burry's put book widens beyond Nvidia
Scion first disclosed NVDA put options valued at roughly $186.6 to $187 million in Q3 2025, equivalent to about 1 million shares. His July 2026 disclosures show the Nvidia short growing alongside new or expanded put positions on Applied Materials, Micron, Tesla, Caterpillar, and the iShares Semiconductor ETF.
Korean chip spending announcements reportedly influenced some of those moves. Nvidia shares have traded approximately 5% lower than on the initial short-announcement day in November 2025. The bet was sizable but not his largest at the time: the same Q3 2025 filing put his Palantir position at approximately $912 million.
The depreciation gap behind the bet
Burry's thesis centers on hyperscalers — Microsoft and Google among them — that account for roughly 50% of Nvidia's data-center revenue. Those customers have been extending the depreciation schedules on their chip infrastructure, making expenses appear smaller each quarter while the assets age at the same rate.
Chip technology advances rapidly enough, he argues, that a GPU bought today might be functionally obsolete in three years even if depreciated over six, creating a gap between accounting reality and economic reality. Should hyperscalers eventually confront that mismatch through write-downs or reduced future orders, Nvidia's revenue could take a hit that current valuations don't reflect.
A sector call that is harder to follow
Shorting SOXX alongside individual names such as Micron and Applied Materials suggests he sees the potential contraction as sector-wide rather than Nvidia-specific. Burry has also deregistered Scion Asset Management, which adds a layer of opacity to tracking his future moves, and the positions disclosed in July 2026 may already have evolved.
Source: Crypto Briefing
Trading involves risk.
Risk Disclaimer
