Michael Burry, known for predicting the subprime mortgage crisis, is currently shorting the iShares Semiconductor ETF (NASDAQ: SOXX), worth $45.8 billion, and some of its major holdings, including Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU). His bearish stance has raised concerns among investors, especially since the ETF has declined by 18.4% in the past month, despite being up 74% year-to-date.
Burry cites a high price-to-sales ratio of 16 for the iShares ETF and highlights Micron’s cyclical nature, noting its recent 25% loss in value. While he questions the valuation of companies like Nvidia, claiming their depreciation schedules do not reflect product longevity, Nvidia’s CEO disputes this, asserting the durability of their AI infrastructure. Though Burry’s short positions may be viewed cautiously, they could present longer-term opportunities for the iShares ETF.
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