Hedge fund manager Michael Burry has disclosed a direct short stake in Micron Technology (MU), continuing his broader bearish campaign against AI-related semiconductor stocks.
Burry, who gained global fame through “The Big Short,” revealed the short position through his Substack publication, citing extreme valuation and cyclical risk.
He disclosed shorting Micron (MU) at $1,051.87 per share, describing the stock’s surge as driven by “fear of missing out” and speculative excess among investors.
Burry wrote in his Substack post that “Micron defines cyclical like no other,” pointing to 34 drawdowns of more than 30% over the last 42 years as evidence of the stock’s volatility.
He noted that Micron shares are now more extended above their 200-day moving average than at any point since 1984, stating “not even during the dot-com peak” had the stock reached such extremes.
Burry argued that Micron’s status as the only pure-play dynamic random-access memory (DRAM) stock on major U.S. exchanges amplifies both its boom-time inflation and its downturn vulnerability.
He was sharply critical of the company’s long-term financial performance, calling its median return on invested capital of 4% and median return on equity of 7% “frankly terrible” by any standard.
Burry added that “one quarter in every three, Micron is a destroyer of capital,” citing decades of negative returns and free cash flow that has been negative nearly half the time.
He also raised concerns about competitive pressure, arguing that capital expenditure plans by South Korean rivals are forcing Micron to spend heavily and compressing its already thin profit margins.
On the subject of high-bandwidth memory, Burry stated, “HBM is the new product, but it is just another in a very long series,” framing it as consistent with his broader AI bubble thesis.
Burry explained he shorted Micron directly because “the puts seemed expensive,” but added that he “will look to add puts should the stock settle down and bring volatility down.”
This position fits within a broader short portfolio Burry disclosed in a June 30 Substack post targeting Nvidia (NVDA), Applied Materials (AMAT), and the iShares Semiconductor ETF (SOXX), predicting a 30% correction across AI chip stocks.
Since early 2026, MU shares had surged more than 240%, though the stock pulled back roughly 10% over the past 30 days amid broader semiconductor sector pressure.
Burry’s bearish semiconductor bets are accompanied by increased long positions in PayPal Holdings (PYPL), Sprouts Farmers Market (SFM), Zoetis (ZTS), Fannie Mae (FNMA), and Freddie Mac (FMCC).
