{"id":913857,"date":"2026-07-05T09:40:16","date_gmt":"2026-07-05T09:40:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/913857\/"},"modified":"2026-07-05T09:40:16","modified_gmt":"2026-07-05T09:40:16","slug":"michael-burry-doubles-down-on-ai-chip-bubble-with-micron-short","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/913857\/","title":{"rendered":"Michael Burry doubles down on AI chip bubble with Micron short"},"content":{"rendered":"\n

Michael Burry<\/strong><\/a> made his name betting against the housing market before the 2008 crash. Now, “The Big Short” investor is turning that same skepticism toward artificial intelligence, and Micron Technology<\/strong> just landed on his watchlist.\u00a0 <\/p>\n

On July 1, Burry<\/a> disclosed he shorted Micron (MU<\/a>) shares at $1,051.87, according to a Substack post.\u00a0 <\/p>\n

Valued at a market cap<\/a> of $1.3 trillion, Micron stock has returned nearly 1,000% over the last three years. Moreover, it is up 260% in 2026, making it among the top-performing stocks globally.\u00a0 <\/p>\n

Burry says Micron’s rally has gone too far<\/strong> <\/p>\n

In the Substack post, Burry<\/a> noted, “Micron defines cyclical like no other,” pointing out the stock has suffered 34 drawdowns of more than 30% over the past 42 years.\u00a0 <\/p>\n

Burry<\/a> stated: <\/p>\n

“Yesterday I shorted one stock even though it was down a good amount because I think I have a pretty good idea how this resolves.” <\/p>\n

He also said<\/a> Micron shares are trading further above their 200-day moving average<\/a> than at any point since 1984, a stretch that includes the dot-com bubble<\/a>. <\/p>\n

He was even harsher on the company’s underlying profitability. Burry<\/a> pegged Micron’s median return on invested capital at just 4% and median return on equity at 7%, calling both figures “frankly terrible.”\u00a0 <\/p>\n

Related: Michael Burry makes first-ever bet against longtime favorite stock<\/strong><\/a> <\/p>\n

Burry<\/a> added that Micron destroys capital roughly one quarter out of every three, a pattern he tied to decades of inconsistent free cash flow<\/a>. <\/p>\n

He framed<\/a> the recent surge as driven by emotion rather than fundamentals<\/a>, citing “fear of missing out, greater fool theory, public commitment bias” as the real forces behind the trade.\u00a0 <\/p>\n

The stock market expert<\/a> also downplayed Micron’s high-bandwidth memory business, the AI-linked chips fueling much of the excitement, saying it is “just another in a very long series” of products rather than a permanent edge. <\/p>\n

According to an Invezz report<\/a>, Burry now holds short positions in Nvidia<\/a> (NVDA<\/a>), Applied Materials (AMAT<\/a>), and the iShares Semiconductor ETF (SOXX<\/a>), and has said AI-related chip names could see a 30% correction. <\/p>\n

<\/a> Michael Burry warns that Micron is an extremely cyclical stockAstrid Stawiarz&sol;Getty Images What Micron’s own numbers show<\/strong> <\/p>\n

Burry’s history lesson checks out on the cyclical part. But Micron’s most recent quarterly results tell a very different story about where the company sits right now. <\/p>\n