Michael Burry, the investor best known for his bets against subprime mortgages before the 2008 financial crisis, has shifted his strategy and now holds put options targeting Micron Technology and other AI-exposed semiconductor stocks, Yahoo Finance reports.

The position marks a change in approach for Burry, whose trading moves are watched closely by retail and institutional investors alike. Rather than taking direct short positions or adjusting equity holdings, the shift involves put options — contracts that gain value when the underlying shares fall — aimed squarely at names tied to the artificial intelligence semiconductor trade.

Micron is the most prominent target named in the report. The memory and storage maker has been swept up in the broader AI rally, alongside the rest of the semiconductor sector, as investors have piled into companies seen as beneficiaries of data-center buildouts and AI infrastructure spending.

The report does not specify the size of the put positions, their strike prices, or their expiration dates. As with any regulatory filing snapshot, the disclosure shows holdings at a point in time and does not necessarily reflect Burry's current portfolio. Options positions in particular can be tactical and short-lived, and put buying can serve purposes beyond a simple directional bearish bet, including hedging exposure elsewhere in a portfolio.

Burry's stance arrives amid a fierce debate over the valuation of AI-linked chip stocks. After a sustained run that pushed semiconductor equities to record highs, questions have mounted about how much of the anticipated AI demand is already priced in — and what happens to sentiment if spending on AI infrastructure slows or disappoints.

For semiconductor investors, the significance of the position lies less in its mechanics than in its signal value. Burry's previous contrarian calls have moved markets, and a visible put position against AI chip names from an investor with his track record adds a high-profile voice to the bear side of the AI valuation argument.

What remains unknown is whether the bet reflects a specific view on Micron's memory pricing, a broader call on AI capex sustainability, or portfolio insurance against a sector-wide pullback. The market will find out only as the positions play out — or as Burry's next disclosure reveals whether he has doubled down or stepped away.