After Jensen Huang's departure, the "Big Short" increases short bets on tech stocks! Warns the AI boom may fall into a "bull trap."

NVIDIA Corporation (NVDA.US) CEO Jensen Huang's departure has cast a shadow over the outlook for tech stocks, and renowned short seller Michael Burry is seizing the moment to increase his bearish bets, asserting that the AI boom is playing out a "bull trap." In an article on his Substack, Burry likened the Nasdaq 100's high on October 6 this year to the peak in March 2000 on the eve of the dot-com bubble burst, and said that on November 12, taking advantage of the index's rebound to 27,000 points, he doubled his put option position on the Nasdaq 100with an exercise date set for early 2027 and currently about 20% out of the money. At the same time, he re-established a previously closed put option position on the VanEck Semiconductor Index. Burry's core judgment is that chip stocks and the broader technology sector will suffer a significant correction before mid-2027. Jensen Huang's sudden departure further reinforced his bearish thesis; he directly advised investors to "get out," and warned that the event will negatively impact NVIDIA Corporation's profit margins and growth prospects while triggering a chain reaction across the entire AI supply chain. "Bull Trap": Nasdaq High Compared to Dot-Com Bubble Peak In his latest article, Burry cited the Nasdaq 100's interim high on October 6, under the headline "Behold the bull-trap," implying that the market has unknowingly topped out. His analogy points directly to the March 2000 peak of the dot-com bubble: at that time, tech stock valuations had detached from fundamentals, followed by a systemic collapse lasting several years. In his November 12 post, Burry explicitly disclosed the details of his tradestaking advantage of the index rebound to double his put option position on the Nasdaq 100, with an exercise period in early 2027 and currently about 20% out-of-the-money space from the strike price, meaning he expects the index to fall substantially from current levels by then. He also said he "remains confident" that semiconductor sector valuations will decline and re-purchased put options on the VanEck Semiconductor Index. NVIDIA Corporation Turmoil Becomes Short-Seller Catalyst, Chain Effects Extend Through Supply Chain The news of Jensen Huang's resignation became the core of this week's tech sector turbulence and gave Burry's bearish case more ammunition. Responding to the event on Substack, he directly advised investors to exit, on the grounds that the leadership change will weigh on NVIDIA Corporation's profit margins and growth momentum. In a follow-up article, Burry further laid out his predicted "victim list," covering companies deeply tied to NVIDIA Corporation that jointly build and finance AI infrastructure. He named emerging cloud service providers CoreWeave (CRWV.US) and Nebius (NBIS.US)both major customers of NVIDIA Corporation GPUsas well as Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), which manufactures NVIDIA Corporation's high-end chips. "This group has experienced severe volatility over the past month," Burry wrote: "They all benefited deeply from NVIDIA Corporation's market dominance and resource spillover, and all of this appears to be entering a new paradigm. What I am looking for are market signals that NVIDIA Corporation's market influence is significantly weakening." Strategy Shifts to ETF Shorting, Betting on Systemic Supply Chain Correction Notably, Burry's short strategy has quietly adjusted over the past few months. According to his October disclosure, his bearish positioning has shifted from precise strikes on individual stocks such as NVIDIA Corporation and Palantir to a more macro index levelmainly concentrated in put options on the VanEck Semiconductor ETF. This shift appears more targeted after Jensen Huang's departure. Since NVIDIA Corporation and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR are the largest holdings in the VanEck Semiconductor ETF, uncertainty over the two companies' prospects directly reinforces Burry's bearish conviction on the ETF. His overall judgment remains unchanged: chip stock valuations are inflated and will face a systemic correction in 2027. This article is reposted from "Wallstreetcn," author: Zhang Yaqi, GMTEight editor: Li Cheng