Michael Burry Shorts Micron Near $1,052 as AI Valuation Fears Spread to Nvidia and Tesla
Updated
Updated · The Motley Fool · Jul 4
Michael Burry Shorts Micron Near $1,052 as AI Valuation Fears Spread to Nvidia and Tesla
3 articles · Updated · The Motley Fool · Jul 4
Summary
June 30 and July 2 disclosures showed Michael Burry building shorts against Micron, Nvidia, Tesla, Applied Materials, Caterpillar and the SOXX semiconductor ETF, with Micron reportedly added near $1,052 a share.
Burry's thesis targets valuation extremes rather than weak businesses: he argues the AI boom has pushed stocks beyond historical norms, with Micron trading further above its 200-day moving average than at any time since 1984.
Micron is central to that bet because its revenue surged to $41.5 billion in fiscal Q3 and management guided roughly $50 billion for Q4, yet Burry is wagering memory-cycle profits will not hold.
Nvidia's case is harder for bears to press—revenue rose 85% to $81.6 billion while the stock trades near 30 times earnings—whereas Tesla trades above 350 times earnings with a 4.2% operating margin and robotaxi hopes still ahead.
Is Michael Burry's bet against AI another 'Big Short' or a colossal miscalculation?
Is the AI boom a true revolution or a dot-com bubble about to burst?
AI Chip Stocks Lose $1.3 Trillion: Burry’s Short, Semiconductor Cyclicality, and the Battle for Market Direction
Overview
Michael Burry, known for predicting the 2008 housing crash, has captured market attention with his bold short positions against leading AI and semiconductor stocks. Leveraging his reputation for spotting systemic risks, Burry has been betting against AI trades for months, fueling debate about whether the rapid gains in these sectors are sustainable. His bearish outlook, rooted in concerns over inflated valuations and speculative excess, has added weight to a more cautious market sentiment. As a result, his actions have not only influenced investor behavior but also intensified scrutiny of the long-term prospects for AI-driven stocks.