In a post on Substack, he warned that the market might be near a 'major top,' with risks echoing the 1987 crash. Burry's concerns are not unfounded. The Nasdaq Composite surged 2.7% on the same day, with the tech-heavy index nearly adding 5% in just two trading sessions. The rally has drawn in new investors, particularly as volatility has eased, according to him. He pointed out that systematic funds, which adjust exposure based on market swings, are increasingly adding leverage as the S&P 500 climbs.
The investor has positioned himself with short bets on several names including the iShares Semiconductor ETF, Micron, Caterpillar, and Tesla. He admitted only one of those positions—Nvidia—is currently in the red. He reiterated that shorting is a high-risk strategy. 'I must short. Most should not,' he wrote, echoing a long-standing sentiment. All other bets remain profitable, and Burry said he would cut his losses if the positions continued to move decisively against him.
Burry has also criticized the current AI boom, saying it's being driven by financing that might not hold. He believes demand for AI infrastructure is speculative, and the market’s rise is creating a feedback loop. 'The market going up on falling volatility forces vol-targeting funds to leverage up,' he said, adding more leverage from momentum strategies.