Michael Burry is all-in on these stocks that have ‘corrected tremendously’ — and doubles down on AI shorts

The NASDAQ-100 hitting fresh all-time highs isn't fazing one of AI's biggest bears.

In a recent Substack post , "Big Short" investor Michael Burry characterized the current state of the NASDAQ as "historically overvalued, and historically top heavy," which gives him increasing confidence to ramp up his short positions against a few major AI stocks.​

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In addition to betting against chips with positions against Micron and the iShares Semiconductor ETF (SOXX), Burry increased his shorts on cloud computing company Nebius Group and the enterprise AI software provider Palantir.

A major part of Burry's bearish thesis is that there will soon be "a chip glut again" as the semiconductor industry falls back into its traditional boom-to-bust cyclicality.

As Burry wrote , "Over the next two years this shortage will blow off as production catches up, and memory will have a down cycle again."

To support his case, Burry shared an interview with the Taiwanese electronics maker Acer's CEO Jason Chen . When asked whether he noticed memory shortages, Chen responded, "No way," adding, "How could there be a continuous shortage? China's production capacity has been consistently increasing, and there is absolutely no shortage issue. Contract prices are currently fluctuating at a high level, with some prices going up and others down, causing a bit of confusion."

Although Burry gets a lot of press for his bearish views, he's not betting against the market entirely. In fact, Burry has been buying beaten-down companies outside the AI sector hand over fist.​

In Burry's Substack , he highlighted five stocks he's now bought as "full positions" in his portfolio: The roofing distributor QXO, the grocery store Sprouts Farmers Market, the custom stuffed animal store Build-A-Bear, the footwear brand Birkenstock and the eCommerce site Mercado-Libre.

While these stocks are in very different industries, they share one trait Burry really likes: they're trading at deep discounts. Burry wrote that he believes all of these stocks "have corrected tremendously" and now offer extremely "attractive" share prices.