Nasdaq‑100 closed at an all‑time peak of 15,000, a 100‑stock index that has been rallying on high‑growth tech themes. Michael Burry, known for his contrarian bets, grew his short book in semiconductor names, adding positions in companies like TSMC, Nvidia, and ASML.
Burry’s comment to Bloomberg Financials highlighted a belief that the chip cycle is in a late‑stage contraction, citing margin compression and slowing demand in the automotive and consumer electronics segments. He said, "The semiconductor market has reached a saturation point, and the next phase will see a pullback."
Analysts at JP Morgan noted that the sector’s average profit margin fell from 33% last year to 28% this quarter, and that the earnings guidance for many chipmakers was below consensus. The broader tech index gained 0.3% despite the upcoming earnings season, underscoring the divergent sentiment between the index and individual sectors.
Burry’s shorts are currently weighted 12% of his overall portfolio, a rise from 8% a quarter ago. He plans to roll these positions into the next earnings cycle, expecting a 15–20% decline in chip earnings before the year‑end. The Nasdaq‑100 is set to report its Q3 earnings on Thursday, which could confirm the market’s view on the tech rally.
Looking ahead, the semiconductor industry faces a potential slowdown as U.S. chip manufacturing subsidies expire and global supply chains adjust. Burry’s stance could pressure valuations, with investors recalibrating exposure to chip‑heavy ETFs. Market watchers should monitor the upcoming earnings releases for confirmation of the cyclical shift Burry predicts.