Michael Burry warns investors to reduce exposure to parabolic tech stocks

Michael Burry, the man who made a fortune betting against the housing market before it imploded in 2008, is sounding the alarm again. This time, his target is the AI-fueled tech rally that has pushed the Nasdaq 100 up 28% since January.

Burry is advising investors to trim their positions in stocks with parabolic price trajectories and raise cash.

What Burry is actually doing with his money

Scion Asset Management’s Q1 2026 13F filing shows roughly $60 million allocated to cash and $85 million in put options. Put options are bets that a stock’s price will fall. Burry has aimed those positions directly at two of the market’s biggest darlings: NVIDIA and Tesla.

NVIDIA has surged 150% year-to-date. Tesla is up 45% over the same period.

Burry also liquidated all of his Chinese tech holdings during Q1 2026.

The dot-com comparison

Burry has drawn explicit parallels between today’s Nasdaq 100 trajectory and the peak of the dot-com bubble in 2000. The current Nasdaq P/E ratio sits at 35x forward earnings, according to Goldman Sachs — the highest level since 2000. The last time valuations were this stretched, the Nasdaq proceeded to lose nearly 80% of its value over the next two and a half years.

Why this matters for crypto investors

Bitcoin and crypto have shown increasing correlation with tech stocks during periods of market stress, particularly during the 2022 drawdown when both the Nasdaq and Bitcoin fell in tandem.

Burry’s track record deserves context. He was famously early on the housing short, enduring years of losses before the trade paid off spectacularly. He warned about a market crash in 2019 that didn’t materialize in the way he expected. He bet against Tesla multiple times before, and Tesla kept climbing.

A 28% YTD gain on the Nasdaq means a lot of investors are sitting on unrealized profits. Burry’s advice to raise cash is essentially saying: take some of those gains off the table before the market decides to take them for you.

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