Michael Burry Shorts AMD on 74.3 P/E; Korean Chip Stocks Rally
AMD•Michael Burry opened a short position against AMD and peers, citing a semiconductor P/E ratio of 74.3, more than double the Nasdaq-100. The sector saw volatility as South Korean chip shares recouped losses after a US selloff, reflecting persistent wafer supply constraints.
1. Michael Burry Launches Semiconductor Short
Investor Michael Burry has taken a short position in the iShares Semiconductor ETF, which holds significant AMD exposure. He pointed to the industry’s 74.3 P/E ratio—over twice that of the Nasdaq-100—to argue that AI infrastructure spending may not sustain current valuations.
2. Korean Chip Shares Rebound on Tight Supply
After an overnight US market selloff, South Korean chip stocks, including Samsung Electronics (down 2.96%) and Micron (down 4.71%), recouped earlier losses as wafer shortages continued to constrain supply. This inventory tightness has underpinned sector support despite broader market volatility.
3. Valuation Concerns Weigh on AMD Outlook
High P/E multiples across the chip sector have raised questions about growth prospects and investor appetite for names like AMD. Slowing corporate AI budgets and stretched valuations pose risks to future revenue trajectories.
