Michael Burry, this time 'short-selling' Micron (MU)..."AI theme rally overheated"

▲ Micron (MU), Artificial Intelligence (AI), Semiconductor, Bear Market, Short Selling/AI Generated Image

Michael Burry, known as the 'Big Short' investor, has targeted Micron Technology (MU), a key stock in the artificial intelligence semiconductor rally. Warnings that the rally has entered an overheated phase are shaking investor sentiment in Wall Street tech stocks.

According to MarketWatch, a U.S. economic media outlet, on July 3 (local time), Burry disclosed his short position on Micron via a Substack post. He stated that he shorted Micron at $1,051.87 per share on July 1. MarketWatch reported that this bet further strengthens Burry's bearish view on the artificial intelligence theme.

Micron is a leading stock in the memory semiconductor industry. Amid the frenzy of investment in AI data centers, its stock price has surged by 697% over the past year. The increase alone reached 241% since 2026. After reporting strong earnings on June 25, it soared to $1,213 per share. However, its closing price on the 3rd dropped to $975.

Burry calmly assessed the reasons behind Micron's surge. He pointed out that the rally stemmed from “fear of missing out, the greater fool theory, and public commitment bias.” He added, “This time may be different, but not different enough.” He believes that expectations for high-bandwidth memory demand have pushed the stock price excessively high.

Burry's bearish bets are not limited to Micron. He previously took bearish positions on Tesla (TSLA), Caterpillar (CAT), Applied Materials (AMAT), and iShares Semiconductor ETF (SOXX). The view is that the expansion of AI infrastructure investment has driven up valuations across semiconductor and power equipment stocks.

Conversely, Burry increased some non-tech stock positions. PayPal Holdings (PYPL), Sprouts Farmers Market (SFM), Zoetis (ZTS), Fannie Mae (FNMA), and Freddie Mac (FMCC) were mentioned as additional purchase targets. MarketWatch also reported that news of Meta Platforms (META) considering selling excess cloud capacity and Apple's (AAPL) potential procurement of Chinese-made memory acted as downward pressure on semiconductor stocks.

[Article Key Summary]

-Michael Burry disclosed his short position on Micron at $1,051.87 per share.

-Micron surged 697% over the past year and 241% since 2026, then dropped from a high of $1,213 to $975.

-Burry also took bearish positions on Tesla, Caterpillar, Applied Materials, and iShares Semiconductor ETF, warning of an overheated artificial intelligence theme.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*