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Burry warns AI overvaluation, shorts Nvidia; China rallies.

7/3/2026

Summary

Burry Warns AI Valuations

Hedge fund manager Michael Burry warned on Tuesday that AI market valuations are stretched.
He placed bearish bets on Nvidia, Tesla, Applied Materials, iShares Semiconductor ETF (SOXX) and Caterpillar.
Burry cited high semiconductor valuations and doubts about the investment cycle’s sustainability.
Meanwhile, China’s technology sector rallied, with the SSE Star 50 index up about 65% from January to June, showing improving earnings despite U.S. bearish sentiment.

Summary

Meta Sells AI

Meta will sell surplus AI-supercomputing capacity to outsiders, targeting the cloud market led by AWS, Azure and Google Cloud.
Nvidia fell 1.41% as the Philadelphia Semiconductor Index dropped 5.45%.
June payrolls rose 57,000, missing the 110,000 forecast, prompting FedWatch to lift July rate-hold odds to 82.4%.
Brent September crude rose 0.3% to $71.80, with WTI August crude up 0.2% to $68.69 amid stalled US-Iran cease-fire talks.

Summary

Samsung Selloff

The selloff spread to Korea, pulling Samsung Electronics and SK Hynix shares down 7%.
SK Hynix supplies high-bandwidth memory (HBM3 and HBM3E) that powers Nvidia’s AI accelerators.
Samsung, the leading memory chipmaker, is racing to catch up in HBM and leads DRAM and NAND flash for data centers.
Analysts project the HBM market could reach $30 billion by 2025, fearing a quick shift to oversupply if hyperscale spending eases.

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Burry Warns AI Valuations

Hedge fund manager Michael Burry warned on Tuesday that AI market valuations are stretched.
He placed bearish bets on Nvidia, Tesla, Applied Materials, iShares Semiconductor ETF (SOXX) and Caterpillar.
Burry cited high semiconductor valuations and doubts about the investment cycle’s sustainability.
Meanwhile, China’s technology sector rallied, with the SSE Star 50 index up about 65% from January to June, showing improving earnings despite U.S. bearish sentiment.

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