{"id":5319,"date":"2026-07-03T15:15:26","date_gmt":"2026-07-03T15:15:26","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5319"},"modified":"2026-07-03T15:15:26","modified_gmt":"2026-07-03T15:15:26","slug":"michael-burry-shorts-micron-stock-warns-ai-chip-rally-has-gone-too-far","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5319","title":{"rendered":"Michael Burry shorts Micron stock, warns AI chip rally has gone too far"},"content":{"rendered":"
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Investor Michael Burry, best known for his successful bet against the US housing market portrayed in The Big Short<\/em>, has reportedly opened a short position in Micron Technology (MU), arguing that the memory chip maker’s recent rally has been driven by speculative enthusiasm rather than fundamentals.<\/p>\n

According to a post published on his Substack, Burry shorted Micron shares at $1,051.87 on July 1 while simultaneously adding to five existing long positions. <\/p>\n

The move comes as Micron remains one of the best-performing semiconductor stocks of 2026 despite a recent pullback<\/a>.<\/p>\n

Micron shares have gained more than 240% since the start of the year, although the stock has declined around 10% over the past month after reaching a high of $1,255 following its June 25 earnings report.<\/p>\n

Burry questions Micron’s valuation and cyclical history<\/h2>\n

In his Substack post, Burry argued that Micron’s rally reflects investor psychology rather than long-term business fundamentals.<\/p>\n

Burry said he shorted the stock because of \u201cfear of missing out, greater fool theory, [and] public commitment bias.\u201d<\/p>\n

He also highlighted the company’s long history of volatility.<\/p>\n

\u201cMicron defines cyclical like no other,\u201d Burry wrote, noting that the company has experienced 34 drawdowns of more than 30% over the past 42 years.<\/p>\n

He added that Micron shares are now trading further above their 200-day moving average than at any time since 1984, \u201cnot even during the dot-com peak.\u201d<\/p>\n

Burry also criticized the company’s historical profitability, stating that Micron’s median return on invested capital of 4% and median return on equity of 7% are \u201cfrankly terrible.\u201d <\/p>\n

He further argued that \u201cone quarter in every three, Micron is a destroyer of capital,\u201d pointing to decades of uneven returns and periods of negative free cash flow.<\/p>\n

Although options could have provided another way to express a bearish view, Burry said, \u201cthe puts seemed expensive,\u201d adding that he \u201cwill look to add puts should the stock settle down and bring volatility down.\u201d<\/p>\n

Bearish view extends across semiconductor sector<\/h2>\n

The Micron position forms part of Burry’s broader negative outlook on artificial intelligence-related semiconductor stocks.<\/p>\n

Earlier this week, he disclosed short positions in Nvidia, Applied Materials and the iShares Semiconductor ETF (SOXX), saying AI-related chip stocks could face a 30% correction.<\/p>\n

In a separate June 30 Substack post, Burry expressed concern over plans by Samsung Electronics and SK Hynix to invest more than $500 billion in a new semiconductor hub.<\/p>\n

\u201cThe proximate cause of today\u2019s rally is big spending announced out of Korea,\u201d Burry wrote. \u201cWell, I see that as the beginning of the end.\u201d<\/p>\n

Market sentiment toward memory stocks has also weakened more broadly. <\/p>\n

Micron shares fell 5% on Thursday after falling nearly 11% on Wednesday alongside sharp losses in SanDisk. <\/p>\n

Some market participants linked the decline to reports that Meta is considering selling excess cloud capacity, while another report indicated that Apple is seeking additional memory supply from China.<\/p>\n

Commenting on the industry, Swissquote senior analyst Ipek Ozkardeskaya said, \u201cChina makes up around 15% of Apple\u2019s sales and other companies could follow these steps as they also see their profits being squeezed by an unreasonable jump in memory chip prices.\u201d<\/p>\n

Burry adds to long positions<\/h2>\n

While increasing his bearish exposure to semiconductors, Burry also disclosed that he added to several existing investments.<\/p>\n

According to his Substack post, he increased holdings in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae and Freddie Mac.<\/p>\n

Summarizing his latest positioning, Burry wrote: \u201cYesterday I shorted one stock even though it was down a good amount because I think I have a pretty good idea how this resolves. I also added to five positions. This time may be different, but not nearly different enough.\u201d<\/p>\n

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The post Michael Burry shorts Micron stock, warns AI chip rally has gone too far<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Investor Michael Burry, best known for his successful bet against the US housing market portrayed in The Big Short, has reportedly opened a short position in Micron Technology (MU), arguing that the memory chip maker’s recent rally has been driven by speculative enthusiasm rather than fundamentals.According to a post published on his Substack, Burry shorted…<\/p>\n","protected":false},"author":1,"featured_media":5320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5319"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5319\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5320"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}