Legendary investor Michael Burry, widely known from the film "The Big Short," has made new moves, significantly increasing his bearish bets against the semiconductor sector while maintaining his short positions on Tesla and Palantir.

Burry disclosed his latest portfolio activity in a post on Substack on July 25. He added to his short position in Micron Technology at an average price of $933.86 per share and increased his short position in NVIDIA at $210.28 per share. Additionally, he increased his short position in the Philadelphia Semiconductor ETF at $535.83, describing it, when combined with held put options, as a "large position" within his portfolio.

Where to begin

Regarding his rationale for shorting NVIDIA, Burry stated that a significant portion of current demand is not driven by genuine end customers. He argued that related financing arrangements are kept off balance sheets and undisclosed, and that future revenues are "mostly financed through circular arrangements." He cited the Bank for International Settlements' 2026 annual report as supporting evidence for his thesis.

Why only a few key holdings?

Meanwhile, Burry maintained his short positions in Tesla and Palantir. He noted that his Tesla short position is "naturally shrinking on its own," implying the stock's decline has reduced the notional value of the short. He also initiated a new short position in Caterpillar and continues to hold put options on the Nasdaq 100 ETF.

Data indicates that some of Burry's short bets are beginning to pay off. The short positions in Tesla and Caterpillar moved sharply in his favor during the July market correction. However, NVIDIA's share price has risen slightly since he initiated his short, making it an outlier in his bearish portfolio.