Michael Burry Sold 25% of His Chip Puts and Says He’s Still Very Bearish
Michael Burry sold 25% of his puts on the VanEck Semiconductor ETF (SMH) after its 11.21% drop on November 5, 2026, taking partial profits. SMH is down 29.21% over the past month but still up 24.32% year to date. Burry remains bearish, holding significant SMH puts expiring in June 2027. Nvidia (NVDA), which makes up 20.57% of SMH, fell 9.26% on the same day. Burry's trade signals for SMH holders depend on future price movements.
How this was made
The 30-second read
Why it matters
Burry's trade highlights lingering bearish sentiment on semiconductor exposure, especially given SMH's heavy Nvidia weighting and political risk concerns.
Market read
The disclosure provides fresh insight into a prominent investor's stance, potentially influencing short‑term trading in SMH and related semiconductor stocks.
What to watch
Potential upside from other chip makers in the ETF and the possibility that the political risk narrative is overstated.
Background
Michael Burry, known for his macro‑focused bets, disclosed via a paid post that he reduced his put exposure on SMH after a sharp intraday decline, but still holds a sizable bearish position.
Ticker impact
Michael Burry sold 25% of his puts on the VanEck Semiconductor ETF (SMH) after the fund fell 11.21% on Nov 5, indicating a large remaining bearish position.
likely pressure as the market prices in Burry's ongoing bearish stance on semiconductor exposure.
Burry is a high‑profile investor; his disclosed put holdings are a direct bearish bet on SMH and its heavy Nvidia weight.
Market effects
The news underscores heightened risk for semiconductor ETFs and chips exposure amid political uncertainty around AI regulation.
U.S. equity markets may see broader semiconductor sector weakness as investors react to Burry's stance.
International investors with exposure to semiconductor ETFs could adjust positions, given the ETF's global holdings.
Counterpoint
Investors may view the sell‑off as an overreaction and consider buying SMH on the dip, especially if AI demand remains strong.
Key entities
- InvestorMichael Burry
Founder of Scion Asset Management, noted for contrarian macro bets.
- ETFVanEck Semiconductor ETF
Ticker SMH, tracks semiconductor sector, heavily weighted to Nvidia.
