Michael Burry disclosed substantial put options on NVIDIA and increased short positions on semiconductor ETF SMH, while US stocks closed mixed with the Nasdaq falling 0.64% and the Philadelphia Semiconductor Index dropping 4.25%. The famed short seller, who profited over 25% from a Tesla short initiated at $416 in June (now trading at $308 following last week's earnings shock), maintains his AI skepticism by comparing the current cycle to the 2008 subprime mortgage crisis through a 'vendor financing' structure where investment capital circulates internally rather than representing genuine external demand. Burry's renewed attention follows his recent Tesla success, though his AI bearish thesis faces counterarguments as 86% of S&P 500 firms that reported second-quarter 2026 earnings beat estimates — exceeding the five-year average of 78% — and Deutsche Bank surveys show Meta's AI advertising tools tangibly improved advertiser efficiency ahead of Meta's July 30 earnings release.
Burry Discloses NVIDIA Puts and Expands SMH Short Position
Michael Burry revealed through a recent disclosure that he holds significant put options betting on NVIDIA's decline, increased his short position on semiconductor ETF SMH, and maintains put options on Nasdaq-tracking QQQ and Palantir. Regarding his Tesla short, Burry stated he "has not yet closed" the position, which began at $416 in June and currently sits over 25% in profit with Tesla trading at $308 after last week's earnings shock.
Burry's thesis centers on "vendor financing" — a circular structure where Company A invests in Company B, which then uses those funds to purchase Company A's chips, inflating Company A's revenue and stock price to enable further investment. Burry argues this mirrors the 2008 subprime cycle's "rising home prices enable more lending, which drives home prices higher" dynamic, representing internal capital rotation rather than genuine external demand that will eventually collapse.
Deutsche Bank Survey Shows Meta AI Ad Tools Improved Efficiency
Deutsche Bank directly surveyed Meta's advertisers and found that those using Meta's AI advertising tools experienced measurable improvements in advertising efficiency and returns. The advertising market provides immediate numerical feedback on effectiveness, and the survey results demonstrate AI delivering tangible value in this quantifiable environment.
Of the 27% of S&P 500 companies that have reported second-quarter 2026 earnings to date, 86% exceeded earnings-per-share estimates. This surpasses both the five-year average of 78% and the ten-year average of 76%, indicating sustained corporate earnings strength.
Meta and Microsoft Earnings Scheduled for July 29-30
Microsoft is scheduled to report earnings in the early morning hours of July 29 (local time), followed by Meta on July 30 (local time). The Federal Reserve's interest rate decision is also scheduled for July 30 (local time). According to CME FedWatch data, the probability of a July rate hold stood at 63.7% as of July 27. Both short-term and long-term US Treasury yields have trended upward recently. Middle East tensions entered a lull over the weekend after US President Donald Trump ordered a halt to airstrikes.
FAQ
What positions did Michael Burry disclose regarding NVIDIA and semiconductor stocks?
Michael Burry disclosed holding substantial put options on NVIDIA, increased his short position on semiconductor ETF SMH, and maintains put options on Nasdaq-tracking QQQ and Palantir. He also confirmed he has not yet closed his Tesla short position initiated at $416 in June, which is currently over 25% profitable with Tesla trading at $308.
When are Meta and Microsoft scheduled to report earnings?
Microsoft is scheduled to report earnings in the early morning hours of July 29 (local time), and Meta is scheduled to report earnings in the early morning hours of July 30 (local time). The Federal Reserve's interest rate decision is also scheduled for July 30 (local time).
