The Big Short investor, Michael Burry, is adding to his bearish bets on AI and semiconductor stocks. In a new Substack post, Burry said he added to his shorts in Nebius (NBIS), Micron (MU), and Oracle (ORCL). He also increased his bearish position in the iShares Semiconductor ETF (SOXX).

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Burry added to his Nebius short at $247, while increasing his Micron and Oracle shorts at $924 and $152, respectively. He also increased his March 2027 puts on the semiconductor ETF SOXX with strikes in the low $400s. That gives Burry a broader bearish position across the chip sector rather than relying only on individual stocks.

Burry Sees a Warning Sign in Nebius' AI Pricing

Burry's strongest warning was aimed at Nebius. The stock has gained about 210% year to date, despite the investor's growing bearish position. "Nebius is what the top of a boom looks like," Burry said.

His comment came after Nebius discussed the pricing of its AI compute capacity during its latest earnings call. The company said it could sell all of its 2027 capacity through one- to three-year contracts. However, it is keeping some capacity available for shorter-term deals.

Nebius said those shorter contracts could fetch $40 million to $50 million per megawatt. That compares with about $20 million to $25 million per megawatt for midterm contracts. Burry questioned why customers would pay about twice as much for shorter-term capacity. "Urgency and convenience, at 2x the rate? That is extreme urgency," he wrote. He described the unusual pricing gap as "backwardation" and questioned why customers are willing to pay so much more for short-term AI capacity.

Burry Questions the Value of AI Hardware

Burry also raised concerns about how quickly AI hardware may lose value. He argued that power itself does not lose value, leaving the GPUs or customers as possible sources of depreciation.

"Power does not depreciate," Burry wrote. "So, either the GPU is depreciating, the customer is depreciating, or, as likely, both."

He also pointed to Nebius' decision to extend its server depreciation period from four years to five years. Burry argued that the company is "counting on roughly 50% annual decay in its deals" while using a longer depreciation period in its financial reporting.

That mismatch is part of Burry's broader concern about AI infrastructure spending. Companies are spending heavily on GPUs and data centers, but the value and earning power of that equipment could change quickly.

Which Stock Does Wall Street Like the Most?

According to TipRanks' Stock Comparison Tool, Micron and Oracle both have Strong Buy consensus ratings. Nebius has a Moderate Buy rating.

Among the three, Micron offers the highest implied upside at 72.18%, based on Wall Street's average price target. Oracle follows with 68.65% upside. Nebius, however, has a 7.02% downside based on its average analyst price target.