Michael Burry on September 28 revised the timeline for his bearish scenario on AI and increased his bet on a sector decline by shifting part of his shorts into put options.

Targets: Micron, Nebius, Palantir, and SOXX ETF

Specific companies and instruments in the sector came under pressure: Micron, Nebius, Palantir, as well as the semiconductor ETF SOXX.

Some options expire next summer

The term for some of the put options is limited: they will expire next summer.

Expected AI revenues may not cover capital expenditures

According to the investor, new research influenced his strategy revision: potential revenues from AI may not justify the industry's significant capital expenditures.

Burry's success story was the basis for the film "The Big Short."