Hedge Fund Builds Bearish Micron Puts While AI Chip Valuations Soar
The Situational Awareness hedge fund’s Q1 13F filing shows new put positions on Micron alongside AMD, NVIDIA, Broadcom, ASML, Intel and TSMC as of March 31. Rising US Treasury yields and AI chip valuations now rival the 1720s Mississippi Bubble, intensifying pressure on Micron’s share rally.
1. Hedge Fund Puts on Micron
The Situational Awareness hedge fund’s Q1 13F filing reveals newly opened put options on Micron shares, marking the fund’s first bearish positions on AI-chip leaders and signaling a shift from its prior bullish bets in under-the-radar technology stocks.
2. Widening AI Chip Bubble Concerns
Put positions were also established on AMD, NVIDIA, Broadcom, ASML, Intel and TSMC, reflecting growing investor anxiety as AI-chip valuations now rival the 1720s Mississippi Bubble and exceed peak levels seen during the dot-com era.
3. Treasury Yield Pressure
Rising US Treasury yields have climbed to multi-month highs, elevating discount rates on long-duration semiconductor earnings forecasts and intensifying pressure on Micron’s share price, while making downside hedges via put options increasingly attractive.