• Michael Burry reportedly sold 25% of his put options on the VanEck Semiconductor ETF (SMH), reducing but not eliminating his bearish bet.
  • The move comes as semiconductor stocks suffer a sharp selloff, with the Philadelphia Semiconductor Index down 11% intraday.
  • Burry retains other bearish positions, including puts on Palantir (NASDAQ:PLTR), Caterpillar (NYSE:CAT), QQQ, and Oracle (NYSE:ORCL), while increasing his stake in MercadoLibre (NASDAQ:MELI).

A Partial Retreat, Not a Surrender

Michael Burry, the investor famed for his prescient bet against the U.S. housing market, has reportedly sold 25% of his put options on the VanEck Semiconductor ETF (SMH), according to a November 5 portfolio update from the third-party Michael Burry Stock Tracker. The sale trims—but does not eliminate—his bearish semiconductor position, and the most defensible interpretation is de-risking rather than a confirmed shift to a bullish outlook.

The tracker’s report, which could not be independently verified, also indicates that Burry continues to hold puts on Palantir, Caterpillar, the Invesco QQQ Trust, and Oracle, and that he increased his position in MercadoLibre by 50%. The available evidence does not establish the sale price, transaction time, original position size, or realized profit, so characterizing the move as confirmed “profit-taking” would go beyond what is known.

This assessment is current to November 5, 2026, at 2:42 p.m. EST, and the intraday market figures below come from Reuters (NASDAQ:TRI)’ 11:59 a.m. update, not closing prices.

What He Reduced—and Why It Matters

In October, Burry reportedly consolidated most of his bearish exposure into Nasdaq-100 index puts expiring in April 2027 and SMH puts expiring in June 2027, both described as roughly 20% out of the money when disclosed. He also retained longer-dated Oracle and Palantir puts. The newly reported trim therefore follows a shift toward broad technology and semiconductor downside exposure, rather than an isolated bet against one chipmaker.

The distinction matters: selling a quarter of an existing put position reduces that position, but does not by itself establish that Burry has reversed his underlying thesis. Nor does the headline reveal the size of the remaining exposure relative to his overall portfolio.

The Fund: Size, Holdings and Recent Performance

This headline concerns an ETF, not a corporate earnings announcement. SMH tracks the MVIS US Listed Semiconductor 25 Index, providing exposure to chip producers and semiconductor-equipment companies. Its holdings span businesses associated with AI computing, communications, industrial electronics, and chip manufacturing.

VanEck’s latest published figures provide the clearest financial context:

| Measure | Latest available figure | |---|---:| | Net assets, November 4 | $65.45 billion | | Net asset value per share, November 4 | $504.45 | | Year-to-date return through November 4 | +40.08% | | October NAV total return | −14.07% | | Annual expense ratio | 0.35% |

These are fund metrics, not corporate revenue or earnings. The combination of a strong year-to-date gain and a steep October decline shows how sharply the semiconductor trade has reversed recently.

SMH also remains concentrated: Nvidia (NASDAQ:NVDA) represented 20.46% of assets on November 4, followed by TSMC (NYSE:TSM) at 9.67%, Texas Instruments (NASDAQ:TXN) at 6.11%, Broadcom (NASDAQ:AVGO) at 5.81%, and AMD (NASDAQ:AMD) at 5.36%. A broad semiconductor put consequently retains substantial exposure to Nvidia and the AI investment cycle.

The reports reviewed describe a portfolio adjustment, not a related leadership change or corporate restructuring at VanEck or its constituent companies.

Economic and Industry Backdrop

The most important connected development is an accelerating chip-stock selloff. Reuters reported on November 5 that the Philadelphia Semiconductor Index had fallen 11% intraday, while the Nasdaq Composite was down 5.2%. Qualcomm (NASDAQ:QCOM) fell 11% after smartphone-chip sales missed expectations. Reuters attributed the broader pressure to disappointing earnings and concerns about the outlook for AI infrastructure spending.

Two forces are interacting:

  • AI investment remains economically significant. Reuters reported that U.S. imports reached a record in September amid an AI-related business-spending boom. That spending connects semiconductor demand to data-center construction, servers, and international trade.
  • Expectations are vulnerable to setbacks. SMH’s October decline and November 5’s sector selloff show that investors can sharply reprice the industry even while its year-to-date performance remains positive.

Burry’s reported reduction is therefore occurring against a substantial sector drawdown. That context makes risk reduction plausible, but does not establish his personal reason for selling or his actual options return.

Political and International Context

Reuters reported investor concerns that the newly elected Democratic-controlled U.S. Congress could slow AI infrastructure investment. It also noted victories by candidates in Texas and Georgia who opposed data-center expansion and campaigned partly on development moratoriums. These are reported political developments and market concerns—not evidence that a nationwide restriction has already been enacted.

Advanced-chip export restrictions remain a material industry constraint. A September Reuters legal analysis explained that controls cover advanced semiconductors and certain computing systems, including restrictions involving China and specified destinations or end users. Such rules can determine whether an AI data-center project can obtain the required chips.

SMH’s international holdings—including TSMC, ASML (NASDAQ:ASML), and SK hynix (KRX:000660)—also make the trade broader than a purely domestic U.S. technology bet. Its portfolio links U.S. equity valuations with Taiwanese manufacturing, Dutch semiconductor equipment, and South Korean memory production.

Stakeholders and Public Debate

  • ETF shareholders and technology investors face immediate valuation risk. The sector’s recent declines matter more directly to their portfolios than an individual investor’s reported position adjustment.
  • Chipmakers and infrastructure suppliers face uncertainty about the pace of AI spending. Nationwide chief market strategist Mark Hackett told Reuters that disappointing earnings and concerns about slower AI construction were pressing sentiment in an unusually volatile, cyclical industry.
  • Communities hosting proposed data centers are influencing the investment outlook through local politics. The election results cited by Reuters show that opposition to expansion has become an electoral issue, although that report does not establish a single motivation shared by all opponents.

The wider debate remains whether AI-related investment can justify current valuations. Burry’s bearish positioning is one side of that debate; VanEck’s own fourth-quarter outlook describes the AI trade as “evolving but intact.” The fund sponsor’s view is a counterpoint, not an independent consensus forecast.

Historical Context and Related Developments

Burry became widely known for anticipating the U.S. subprime mortgage crisis. His current bearish technology positioning is a different thesis, with different instruments and timing risks; that earlier success does not validate the present trade.

His semiconductor skepticism also predates this headline:

  • November 2023: Scion disclosed puts covering 100,000 shares of the iShares Semiconductor ETF (SOXX)—a different fund from today’s reported SMH position.
  • October 2026: Burry concentrated much of his bearish exposure in Nasdaq-100 and SMH puts, saying a significant market top could occur within zero to nine months.
  • November 2026: The latest tracker update reports the 25% SMH-put reduction while retaining other bearish positions and increasing a MercadoLibre long position.

A related November 3 review of his public trades cautioned that actual options returns cannot be calculated from underlying share-price changes alone. That limitation is especially relevant when interpreting claims that this sale proves his semiconductor bet has paid off.

Future Outlook

In the short term, the immediate questions are whether the chip selloff stabilizes, whether earnings disappointments spread beyond Qualcomm, and whether political concerns translate into actual delays in AI infrastructure investment. Hackett’s analysis emphasizes that semiconductor shares can react intensely when sentiment changes, with hedge-fund selling and deleveraging contributing to volatility.

Through 2027, Burry’s reported June 2027 SMH expiry creates a defined time horizon for that disclosed trade. His October prediction of a market top within nine months remains his forecast—not an established outcome or consensus view.

The central uncertainty is whether semiconductor earnings and AI spending remain strong enough to support valuations despite policy constraints and recent market weakness. The evidence supports describing the latest headline as a partial retreat from one bearish position while substantial skepticism remains—not as proof that the semiconductor downturn is over, or that a larger crash is inevitable.

Correction: An earlier version of this article misstated the year-to-date return for SMH through November 4. It is +40.08%, not +4.08%.