Burry Buys Back 25% of Semiconductor Fund Bet as Nvidia Falls

Key Facts

Investor Michael Burry published a post on Nov. 12 titled "Enough, Nvidia, SMH vs. SOXX, Earnings Quality," describing it as time "to activate two short positions and one long position." In the post, he said he had bought back 25% of the put options position he had previously cut in VanEck’s semiconductor ETF, with contracts expiring in June. The report did not specify the expiration year. The headline and standfirst also contained no documented details about other instruments or additional position sizes. The specific information about his move therefore centers on the portion he bought back from the reduced position.

The post came during a session of sharp volatility in Nvidia shares. The Associated Press said the stock fell 4.3% on Thursday after recovering from an opening drop of about 14%. Nvidia closed at $166.19 on Nov. 12, according to EL7 daily data. The Associated Press said Jensen Huang stepped down as the company’s chief executive, a leadership development that coincided with the stock’s volatility. Nvidia shares had risen 2.9% in the previous session, Wednesday, as part of a rebound in AI stocks.

In his post, Burry pointed to moves by companies tied to AI infrastructure and said Nebius shares fell 20% that day. He also named TSMC, ASML and CoreWeave among the companies he is watching in the sector. He said investigations involving Nvidia that had been reported to the U.S. Justice Department were not new to him, adding: "This is not news to me." These references show that his stated interest in the post extended to chipmakers and infrastructure companies linked to Nvidia. The information available in the post did not quantify his exposure to these companies.

Nvidia’s decline added to heavy market value losses over the week. Reuters estimated that its market capitalization fell by $550 billion during the week through Thursday’s session. The agency said the stock had lost nearly a third of its value in the five weeks since the Nasdaq Composite’s latest peak, wiping out more than $1 trillion in market value. In the same session, the S&P 500, Dow Jones and Nasdaq Composite each fell 0.4%, according to the Associated Press. The Russell 2000 fell 1.7%, while the Nasdaq remained up 3.2% for the week through Thursday’s close, placing the session’s losses within a volatile week for the index.

Reuters said retail buyers limited Nvidia’s losses during Thursday’s session after the stock fell as much as 14% at the open. Vanda Research estimated retail investor purchases in the first half-hour of trading at $111 million. That followed Wednesday’s session, when the Nasdaq Composite rose 1.6% and Nvidia gained 2.9%, before the move reversed the next day. These opposing moves underscore how quickly trading in AI stocks shifted across the two sessions. In this environment, Nvidia’s share-price move remains distinct from the weekly index trend, which was still positive at Thursday’s close.

The U.S. Producer Price Index for October was scheduled for release on Nov. 13 at 08:30 a.m., according to the U.S. Bureau of Labor Statistics’ calendar. The data are due after Thursday’s session, which saw the major indexes fall in tandem and greater volatility in Nvidia. Price data are a near-term focus for investors as they assess the inflation outlook. Federal Reserve Chair Kevin Warsh was then scheduled to deliver a speech on Nov. 16, according to information in the initial report. Traders will remain focused on these dates as technology shares continue to fluctuate.