Michael Burry Takes a Big Short Against Micron Stock (MU)
Complete. Here is the key summaryInvestor Michael Burry has taken a significant short position against Micron Technology (MU) stock, citing that the AI-driven rally has pushed the chipmaker into 'bubble territory.' He sold short at $1,051.87 per share, criticizing Micron's cyclical nature and poor capital returns. Concurrently, Burry disclosed long positions in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae, and Freddie Mac, adding to his broader 'AI short basket' which includes Nvidia and Tesla.
The "Big Short" investor, Michael Burry, is now targeting one of the market's hottest AI chip stocks, Micron Technology (MU). He has taken a direct short position against MU stock, revealing the move through a new Substack post. Alongside the MU short, Burry disclosed long positions in PayPal (PYPL), Sprouts Farmers Market (SFM), Zoetis (ZTS), Fannie Mae (FNMA), and Freddie Mac (FMCC).
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Explore TSLQ for 2X short leverage on TSLABurry added to PayPal at $45.31, Sprouts Farmers Market at $89.33, Zoetis at $74.80, Fannie Mae at $6.15, and Freddie Mac at $5.69.
Why He's Betting Against Micron
Burry said Micron stock has been pushed into "bubble territory" by the massive AI rally. He shorted MU at $1,051.87 per share. He said Micron's options were too pricey, so he avoided puts for now.
Further, Burry said Micron is the clearest example of the boom‑and‑bust cycle in chips. He noted:
- Micron Is Highly Cyclical. As a pure DRAM stock, it gets hyped in good times and hit hard in downturns.
- Weak Long‑Term Returns. He called Micron's ROIC and ROE "terrible," saying the company destroys capital in about one out of every three quarters.
- Rising Global Chip Spending: Burry believes huge global chip investments, including South Korea's over $500 billion semiconductor plan, signal that the industry may struggle to earn real returns.
He compared today's AI hype to the dot‑com bubble, saying too much money is chasing too little proven profit.
Importantly, Micron is just one piece of his growing "AI short basket." Recently, he disclosed short positions in Nvidia (NVDA), Tesla (TSLA), Caterpillar (CAT), Applied Materials (AMAT) and the iShares Semiconductor ETF (SOXX).
Which Is the Best Stock, According to Analysts?
We used the TipRanks Stock Comparison Tool to compare the stocks Burry is currently short on.
Analysts are most bullish on MU, AMAT, and NVDA, all three carrying a Strong Buy consensus rating. Among them, Nvidia offers the highest 12-month upside potential of 58.77%. Meanwhile, TSLA and CAT have Moderate Buy consensus ratings.