Michael Burry Shorts Chip Stocks, Opens New Microsoft Position

The man who predicted the 2008 financial crisis is making bold moves again — and this time, his target is the AI chip trade.

Michael Burry's Scion Asset Management has revealed a new short position against SOXX, the iShares Semiconductor ETF that tracks major chipmakers including NVIDIA, AMD, and TSMC. Simultaneously, he's opened a fresh long position in Microsoft.

The thesis is striking: Burry appears to believe the AI hardware boom has peaked. Companies have spent hundreds of billions building GPU infrastructure, but the real question is whether revenue will ever catch up to the investment. Sound familiar? It's the same pattern he spotted in housing.

Meanwhile, his Microsoft bet signals confidence in companies that monetize AI through software and platforms rather than selling the picks and shovels. With Azure's AI services, Copilot integration across Office, and the OpenAI partnership, Microsoft arguably has the most diversified AI revenue stream in tech.

The timing is notable. Semiconductor stocks have surged on AI enthusiasm, pushing valuations to levels that many analysts consider stretched. If enterprise AI spending plateaus — or even just grows slower than expected — chipmakers could face a painful correction while software platforms continue collecting recurring revenue.

Burry's track record isn't perfect, but when the man who shorted the housing market starts shorting chips and buying software, it's worth paying attention. The AI gold rush may be entering its next phase — one where the winners aren't the ones selling GPUs, but the ones building the applications on top of them.