Investor Michael Burry identifies massive chip investment plans from Samsung and SK Hynix as the beginning of the end for the semiconductor rally. He describes this large-scale spending on his Substack as a sign that the market cycle is peaking.
Burry warns the sector is dangerously overvalued and draws parallels to the 2000 dot-com bubble. The Philadelphia Semiconductor Index currently trades 65% above its 200-day moving average.
Burry disclosed new short positions against Nvidia, Tesla, and the iShares Semiconductor ETF (SOXX). These bets underscore his bearish outlook on the industry.