Michael Burry's Scion Asset Management bought $700 strike December 2028 call options on Microsoft, a bet that the stock will nearly double from its current $373 level. The position is his largest equity holding, disclosed in the latest 13F filing.
Michael Burry's Scion Asset Management disclosed in a 13F filing that it held December 2028 call options on Microsoft (MSFT) at a $700 strike price. That bet implies a nearly 88% upside from the stock's current $372.97, which Microsoft hit after a 5.71% rally today.
Burry, who famously bet against subprime mortgages before the 2008 crisis and later bought GameStop before its meme-stock surge, has been rotating into large-cap tech. The Microsoft position is his largest equity bet in the latest filing period. The $700 strike means the calls only pay off if Microsoft's stock reaches or exceeds that level by late 2028, roughly a 14% annualized gain from here.
Microsoft sits at the center of the AI infrastructure race. Its Azure cloud business has become the primary platform for enterprise AI workloads, and its partnership with OpenAI has deepened through a multibillion-dollar investment. The company also recently hired former Inflection AI leader Mustafa Suleyman to run its consumer AI division, signaling an aggressive push into the consumer-facing side of generative AI.
The market has already priced in much of that optimism. Microsoft trades at 31 times forward earnings, a premium over its five-year average of 25. Still, the company's revenue growth this fiscal year is expected to accelerate as AI contributions ramp up. The case for the $700 bet is that Microsoft's AI monetization will not just drive earnings growth but expand the multiple further as the market extends its runway for the technology's adoption.
A key risk is that the AI spending cycle slows or that regulation in Washington shifts the competitive dynamics. Microsoft's 31x multiple already leaves it vulnerable to any earnings disappointment. If AI revenue growth decelerates, the stock could re-rate lower, making the $700 strike harder to reach. Burry has taken long positions that have worked out (GameStop) and ones that have not (a late-2022 bet on inflation peaking). The Microsoft call options carry a substantial time premium, and any pullback in the broader tech sector would eat into their value.
The filing covers the quarter ended March 31, 2025. Burry could have adjusted the position since then. The Scion portfolio also included large stakes in other tech names, suggesting a concentrated bet on the AI theme. Microsoft's next catalyst is its fiscal fourth-quarter earnings in July, where Azure growth and AI revenue disclosures will be the primary focus.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.