"Big Short" investor Michael Burry is cashing in part of his AI bet as tech stocks sell off, a sign he still expects trouble but is locking in some profit now.

• Burry sold off 25% of his put options (bets that a stock will fall) on a major semiconductor ETF holding Nvidia, TSMC, AMD, Micron, and Broadcom, taking profit after a sharp tech selloff.
• He still thinks AI stocks are in a bubble, betting the boom depends on companies endlessly pouring money into AI, and any revenue disappointment could trigger a sharp pullback.
• He's keeping bearish bets on other names like Oracle and Caterpillar, so he isn't fully stepping away from his downbeat view.
• The broader market is jittery too: Wall Street's fear gauge (VIX) hit a four-month high, and big investment banks have seen tens of billions of dollars flow out of tech stocks recently.
• Some comparisons are being drawn to the dot-com bust and the 2008 crash, though other big investors say it's too early to call this a bubble.

Outlook: Expect continued swings in AI and chip stocks as investors argue over whether this is a real bubble or just a rough patch, with Burry's trades seen as a signal to watch.