Michael Burry warns of chip stock sell-off; US mortgage rates hit 7.12%
On September 23, US stock markets opened lower, with the Nasdaq falling 1.13%, led by semiconductor stocks after prominent short-seller Michael Burry increased his short position against Micron Technology, warning of a "violent sell-off" due to a cycle reversal. Chip stocks including SK Hynix, Intel, AMD, and Nvidia fell 1-4%. US mortgage rates rose to 7.12%, the highest since May 2024, pressuring the housing market. Gold and silver prices also dropped sharply, with spot gold falling below $4,300.
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Common ground
- Both sides agree that the U.S. semiconductor industry has problems, especially with Intel's decline and over-reliance on financial speculation.
- Both acknowledge that China's semiconductor self-sufficiency is improving, moving from 5% to 20% in a decade.
- Both agree that the U.S. housing market is under real pressure from high mortgage rates, which could slow the economy.
- Both recognize that quantum computing is still years away from being commercially useful for both countries.
Points of contention
- The Eastern Agent sees Michael Burry's short on chip stocks as a sign of systemic U.S. decline, while the Neutral Agent views it as just one investor making a cyclical bet.
- The Eastern Agent argues that U.S. manufacturing decline is a systemic failure, but the Neutral Agent says Intel's problems are company-specific and the U.S. still leads in chip design and IP.
- The Eastern Agent claims China has already pivoted away from U.S. markets through trade diversification, while the Neutral Agent says the U.S. and EU still account for 35% of Chinese exports.
- The Eastern Agent says China leads in practical quantum communication, but the Neutral Agent argues the U.S. leads in error correction, which is key for general-purpose quantum computing.
Blind spots
- Neither side fully addresses how demographic decline in both the U.S. and China will affect long-term economic growth and innovation.
- Both overlook the risk that geopolitical tensions could disrupt global supply chains in ways that hurt both countries, not just one.
- The debate ignores the role of smaller players like South Korea, Japan, and the EU in shaping the semiconductor landscape.
WorldAttention’s read
This debate shows that the U.S. and China are in a complex tech race where neither side is clearly winning or losing. The U.S. still leads in chip design, IP, and capital markets, but has neglected manufacturing. China is catching up fast in manufacturing and self-sufficiency, but still depends on foreign technology for advanced chips. Both economies face real pressures—U.S. housing costs and China's export reliance—that could slow them down. The real question isn't who's ahead today, but whether either system can adapt to long-term challenges like aging populations, debt, and global instability.
Reporting timeline
Short-seller Mike Burry warns of chip stock sell-off; US mortgage rates hit 7.12%
On Wednesday, US stock markets opened lower with the Nasdaq falling 1.13%. Prominent short-seller Mike Burry warned of a 'violent sell-off' in semiconductor stocks due to a cycle reversal, increasing his short position in Micron Technology. Chip stocks including SK Hynix, Lam Research, Intel, and AMD fell 1-4%. Meanwhile, US mortgage rates rose to 7.12%, the highest since May 2024, threatening the housing market already pressured by high prices and weak sales. In other news, investor Jason Calacanis announced small bets on autonomous driving firms WeRide and Pony.ai, plus EV makers Lucid and Rivian, predicting acquisitions within 24 months. IonQ shares initially surged 10% after announcing a real-time quantum error correction decoder breakthrough using a single CPU, developed with partners including AWS and Nvidia. Gold and silver prices also fell sharply, with spot gold dropping below $4,300.
Read sourceShort-seller Michael Burry warns of chip stock sell-off; US mortgage rates top 7%
On September 23, US stock markets opened lower, led by a decline in semiconductor stocks after prominent short-seller Michael Burry increased his short position against Micron Technology, warning that a cyclical reversal would trigger a 'violent sell-off.' Chip stocks including SK Hynix, Intel, AMD, and Nvidia fell. Meanwhile, international gold and silver prices dropped sharply, with spot gold falling over 1% below $4,300. The US mortgage rate rose 15 basis points to 7.12%, the highest since May 2024, according to the Mortgage Bankers Association, potentially further pressuring the housing market already weakened by high prices and sluggish sales. Separately, investor Jason Calacanis announced small bets on autonomous driving firms WeRide and Pony.ai, as well as EV makers Lucid and Rivian, predicting acquisition within 24 months. IonQ announced a breakthrough in quantum error correction, causing its stock to rise 10% before retreating.
Read sourceShort Seller Michael Burry Warns of Chip Stock Selloff; US Mortgage Rates Rise
On September 23, US stock markets opened lower, led by a decline in chip stocks after prominent short seller Michael Burry increased his short position against Micron Technology, warning of a 'violent selloff' due to a cyclical reversal. SK Hynix, Lam Research, Intel, and KLA fell over 3%, while ASML, Microchip Technology, Broadcom, AMD, Micron, Qualcomm, and others dropped over 2%. International gold and silver prices also fell sharply, with spot gold dropping over 1% below $4,300. Separately, US mortgage rates rose to 7.12%, the highest since May 2024, potentially pressuring the housing market. Investor Jason Calacanis announced small bets on autonomous driving firms WeRide and Pony.ai, plus EV makers Lucid and Rivian, predicting acquisitions within 24 months. IonQ announced a quantum computing breakthrough with a real-time error correction decoder, causing its stock to rise 10% before retreating.
Read sourceShow 2 older updatesHide older updates
‘Big Short’ Investor Warns of Chip Stock Selloff; Quantum Computing Firm IonQ Rises
On Wednesday, September 23, U.S. stock markets opened lower, with the Nasdaq falling over 1%, led by a decline in semiconductor stocks. Investor Michael Burry, known as the 'Big Short,' increased his short position against Micron Technology (MU) and warned that a cyclical reversal could trigger a 'violent selloff.' Chip stocks including SK Hynix, Intel, KLA, ASML, and AMD fell between 1% and 4%. Meanwhile, international gold and silver prices also dropped sharply, with spot gold falling below $4,300. U.S. mortgage rates rose to 7.12%, the highest since May 2024, potentially further weakening the housing market. Separately, investor Jason Calacanis announced he has bought shares in autonomous driving firms WeRide and Pony.ai, as well as EV makers Lucid and Rivian, predicting acquisitions within 24 months. In tech news, quantum computing company IonQ (IONQ) surged 10% after announcing a breakthrough in real-time quantum error correction, a milestone that could address a key industry bottleneck.
Read source‘Big Short’ Investor Warns of Chip Stock Selloff; IonQ Reveals Quantum Error Correction Milestone
On September 23, U.S. stock markets opened lower, with the Nasdaq falling 1.13% as semiconductor stocks led declines. Investor Michael Burry, known as the 'Big Short,' warned of a 'violent selloff' due to a cycle reversal and increased his short position in Micron Technology. Chip stocks including SK Hynix, Intel, AMD, and Nvidia fell. Meanwhile, U.S. mortgage rates rose to 7.12%, the highest since May 2024, pressuring the housing market. Investor Jason Calacanis disclosed small bets on autonomous driving firms WeRide and Pony.ai, and EV makers Lucid and Rivian, predicting acquisitions within 24 months. IonQ announced a breakthrough in real-time quantum error correction, using a single CPU to decode errors, potentially enabling scalable fault-tolerant quantum computing. Gold and silver prices also dropped sharply.