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▲ US stocks, semiconductors, electric vehicles, bear market/AI generated image
Immediately after investor Michael Burry, known as one of Wall Street's leading pessimists, disclosed short positions targeting the overheating of artificial intelligence (AI), semiconductor and electric vehicle-related stocks simultaneously wavered, bringing cracks in the tech stock rally to the forefront of the market.
According to crypto media outlet BeInCrypto on July 3 (local time), Burry disclosed new short positions on June 30, targeting Tesla (TSLA), NVIDIA (NVDA), Caterpillar (CAT), Applied Materials (AMAT), and the semiconductor industry. Burry presented these positions not as a strategy to sell individual stocks, but as a bet on the overheated AI cycle.
In a post on Substack, Burry called the semiconductor index "the purest form of overvaluation" and extended the expiry of SOXX put options to March 2027. At the time of Burry's disclosure, the Philadelphia Semiconductor Index was trading more than 65% above its 200-day moving average. Burry compared this trend to the dot-com bubble era.
Market reaction quickly cooled. After reports emerged that Meta (META) was building a Meta Compute business to lease its excess AI data center capacity to external customers, investors interpreted this as a sign that AI computing supply was catching up with demand. On July 2, the Philadelphia Semiconductor Index plummeted by over 6%, and the selling spread to Samsung and SK Hynix in Asian markets. A circuit breaker was temporarily triggered in South Korea's KOSPI.
Memory and storage-related stocks also saw significant declines. SanDisk fell by approximately 20% over the past five trading days, while Seagate and Micron also showed weakness amid concerns of oversupply. Despite Micron's fiscal third-quarter revenue increasing by 346% year-over-year, its stock gave back some of its 2026 gains.
Tesla also dropped by 7.5% on the same day, marking its largest single-day decline in about a year. Although Q2 vehicle deliveries of 481,026 units surpassed Wall Street's expectations, the market engaged in profit-taking after the strong performance was disclosed. BeInCrypto reported that while Burry's short positions cannot be definitively stated as the direct cause of the stock price drop, given that most of the asset classes targeted by Burry are under pressure, Tesla's upcoming earnings release on July 22 and its AI capital expenditure outlook will be key variables in determining whether tech stocks will see a correction.
Immediately after investor Michael Burry, known as one of Wall Street's leading pessimists, disclosed short positions targeting the overheating of artificial intelligence (AI), semiconductor and electric vehicle-related stocks simultaneously wavered, bringing cracks in the tech stock rally to the forefront of the market.
According to crypto media outlet BeInCrypto on July 3 (local time), Burry disclosed new short positions on June 30, targeting Tesla (TSLA), NVIDIA (NVDA), Caterpillar (CAT), AMAT, and the semiconductor industry. Burry presented these positions not as a strategy to sell individual stocks, but as a bet on the overheated AI cycle.
In a post on Substack, Burry called the semiconductor index "the purest form of overvaluation" and extended the expiry of SOXX put options to March 2027. At the time of Burry's disclosure, the Philadelphia Semiconductor Index was trading more than 65% above its 200-day moving average. Burry compared this trend to the dot-com bubble era.
Market reaction quickly cooled. After reports emerged that Meta (META) was building a Meta Compute business to lease its excess AI data center capacity to external customers, investors interpreted this as a sign that AI computing supply was catching up with demand. On July 2, the Philadelphia Semiconductor Index plummeted by over 6%, and the selling spread to Samsung and SK Hynix in Asian markets. A circuit breaker was temporarily triggered in South Korea's KOSPI.
Memory and storage-related stocks also saw significant declines. SanDisk fell by approximately 20% over the past five trading days, while Seagate and Micron also showed weakness amid concerns of oversupply. Despite Micron's fiscal third-quarter revenue increasing by 346% year-over-year, its stock gave back some of its 2026 gains.
Tesla also dropped by 7.5% on the same day, marking its largest single-day decline in about a year. Although Q2 vehicle deliveries of 481,026 units surpassed Wall Street's expectations, the market engaged in profit-taking after the strong performance was disclosed. BeInCrypto reported that while Burry's short positions cannot be definitively stated as the direct cause of the stock price drop, given that most of the asset classes targeted by Burry are under pressure, Tesla's upcoming earnings release on July 22 and its AI capital expenditure outlook will be key variables in determining whether tech stocks will see a correction.
[Article Summary]
-Burry disclosed short positions on June 30, targeting Tesla, NVIDIA, Caterpillar, AMAT, and the semiconductor industry.
-The Philadelphia Semiconductor Index plummeted by over 6% on July 2, and SanDisk fell by approximately 20% over the past five trading days.
-Tesla's Q2 vehicle deliveries of 481,026 units surpassed expectations, but its stock price fell by 7.5% on the same day.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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