It looks like 'Big Short' investor Michael Burry nailed bet against chip stocks

4 hours ago

Michael Burry shorted the iShares Semiconductor ETF (SOXX) at around $643 and refreshed his bearish put options.
The SOXX fell 21% in July, closing at $505, validating Burry's bet.
Burry cited the Philadelphia Semiconductor Index as overextended and its price-to-sales ratio as 'very high' at over 16.
He doubled down on his short positions, adding more shorts at around $536 and $506.
Burry also disclosed bets against individual chipmakers like Nvidia and Micron, as well as the Nasdaq 100.
He remains a skeptic of the AI boom, warning of overspending on microchips and data centers.

IBM shares dropped over 25% after disappointing Q2 results, worse than the 1987 Black Monday crash.
Revenue reached $17.2bn, up only 1% year-over-year, missing analyst forecasts of $17.86bn.
IBM blamed a shift in corporate spending from software to data center infrastructure and cybersecurity.

Big tech Q2 earnings show wild stock swings, typical of a bubble phase, with investors reacting unpredictably to capex and cash flow reports.
Massive AI data center spending is squeezing free cash flow, especially at Meta, where capex caused a dramatic sell-off.
Amazon's earnings rose due to AWS growth and one-time energy hedging, not core business strength, raising skepticism about AI investment returns.

AI stock sell-off intensified in South Korea, driving the Kospi index to a three-month low.
SK Hynix and Samsung Electronics fell over 10% amid rising concerns over AI companies' borrowing for datacentre expansion.
Analysts attribute the sell-off to worries over AI investment spending and competition from cheaper Chinese chip-making tools.

The Magnificent Seven tech giants lost 10% of their value in June, wiping out $2.3 trillion in market cap.
Investors question AI hype, fearing tech valuations were unsustainable as growth expectations accelerate.
Market rotates from hyperscalers like Microsoft to chipmakers like Nvidia; memory firms see huge gains.

OpenAI has encrypted Codex agent instructions, causing developer concerns about debugging and auditing difficulties.
Anthropic's Claude AI shows varying values and expressions across different languages, such as Hindi and Arabic.
New York has paused datacenter constructions over 50 MW to establish environmental and ratepayer protection rules.

IBM shares dropped over 25% after disappointing Q2 results, worse than the 1987 Black Monday crash.
Revenue reached $17.2bn, up only 1% year-over-year, missing analyst forecasts of $17.86bn.
IBM blamed a shift in corporate spending from software to data center infrastructure and cybersecurity.

Big tech Q2 earnings show wild stock swings, typical of a bubble phase, with investors reacting unpredictably to capex and cash flow reports.
Massive AI data center spending is squeezing free cash flow, especially at Meta, where capex caused a dramatic sell-off.
Amazon's earnings rose due to AWS growth and one-time energy hedging, not core business strength, raising skepticism about AI investment returns.

AI stock sell-off intensified in South Korea, driving the Kospi index to a three-month low.
SK Hynix and Samsung Electronics fell over 10% amid rising concerns over AI companies' borrowing for datacentre expansion.
Analysts attribute the sell-off to worries over AI investment spending and competition from cheaper Chinese chip-making tools.

The Magnificent Seven tech giants lost 10% of their value in June, wiping out $2.3 trillion in market cap.
Investors question AI hype, fearing tech valuations were unsustainable as growth expectations accelerate.
Market rotates from hyperscalers like Microsoft to chipmakers like Nvidia; memory firms see huge gains.

OpenAI has encrypted Codex agent instructions, causing developer concerns about debugging and auditing difficulties.
Anthropic's Claude AI shows varying values and expressions across different languages, such as Hindi and Arabic.
New York has paused datacenter constructions over 50 MW to establish environmental and ratepayer protection rules.

Hasty Briefsbeta