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

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

Michael Burry, known as the 'Big Short' investor, has set his sights on Micron Technology (MU), a key stock in the artificial intelligence semiconductor rally. Warnings that the surging market has entered an overheated phase are shaking Wall Street's tech stock investment sentiment.

According to the U.S. economic news outlet MarketWatch on July 3 (local time), Burry disclosed his short position in 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 strengthened Burry's bearish outlook on the artificial intelligence theme.

Micron is a leading stock in the memory semiconductor industry. Amidst the frenzy of investment in AI data centers, its stock price surged by 697% over the past year. Since 2026 alone, the increase has reached 241%. After strong earnings were announced on June 25, the stock price soared to $1,213 per share. However, the closing price on July 3 fell 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 judged that expectations for high-bandwidth memory demand had pushed the stock price up excessively.

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). His view is that the expansion of AI infrastructure investment has pushed 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 buying 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 a short position in 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 overheating in the artificial intelligence theme.

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