Michael Burry, renowned for his prescient bets against subprime mortgages during the 2008 financial crisis, is now expanding his short positions in the AI sector. Burry has maintained his put options on NVIDIA and Palantir, while adding short positions on semiconductor ETFs and the Nasdaq-100 ETF. He has also increased his holdings in traditional software stocks like Adobe and Salesforce, which he believes are undervalued due to the AI boom. Burry's strategy focuses on shorting stocks benefiting from the AI surge, while going long on those negatively impacted by it. Despite NVIDIA's stock nearing its all-time high, Burry remains steadfast in his belief that the AI sector is overvalued, drawing parallels to the late 1990s internet bubble. His portfolio adjustments reflect a classic long-short hedge, aiming to capitalize on a potential correction in AI valuations.