The Big Short investor, Michael Burry, is adding to his bearish bets on AI and semiconductor stocks. In a September 22 post, Burry said he added to his shorts in Micron (MU), Nebius (NBIS), and Palantir (PLTR). He also increased his bearish position in the iShares Semiconductor ETF (SOXX) “in some size.”
Burry warned that memory producers have reached “ridiculous prices” and could “sell down intensely” when the cycle turns. His comments came after Acer CEO Jason Chen raised concerns about rising memory supply and prices.
Burry has previously shorted Nvidia (NVDA), Applied Materials (AMAT), and Micron. Micron stock has climbed 284% this year, as demand for HBM and other memory products has surged. Burry believes the sharp rise has left memory stocks vulnerable if supply starts catching up with demand.
Burry Sees Rising Memory Supply as a Warning
Burry highlighted Chen’s comments about growing memory inventories and rising production in mainland China. Chen said some memory products remain in short supply, while DDR4 now has “more sellers than buyers.”
Burry said the comments align with his own view. He noted that memory makers shifted some production toward high-bandwidth memory (HBM) to meet AI demand. Now, he said, “normal RAM” production is ramping back up.
That could increase memory supply and put pressure on prices if demand fails to keep pace.
Burry Questions How Long the Memory Shortage Can Last
Acer’s comments also raise questions about the length of the current memory cycle. Chen said expanding Chinese production could ease some supply constraints over time.
Burry also cited a report that Chinese memory maker CXMT has achieved DDR5 manufacturing yields above 90%, calling it “huge if true.” At the same time, AI data centers continue to consume large amounts of HBM. Samsung Electronics (SSNLF), SK Hynix (SKHY), and Micron have all shifted capacity toward HBM to meet that demand.
Burry believes rising production could eventually ease the memory shortage and put pressure on prices.
Burry Is Also Buying These Five Stocks
In addition to his bearish positions, Burry also disclosed purchases of QXO (QXO), Build-A-Bear Workshop (BBW), Sprouts Farmers Market (SFM), Birkenstock (BIRK), and MercadoLibre (MELI).
He said all five stocks had “corrected tremendously” and that he found their prices “rather attractive.” Burry added that all five positions are now “full positions.”
PLTR, MU, or NBIS: Which of Burry’s Shorted Stocks Does Wall Street Like?
According to TipRanks’ Stock Comparison Tool, Micron has a Strong Buy consensus rating, while Nebius and Palantir have Moderate Buy ratings.
Micron has the highest analyst upside at 42.72%. Nebius follows with 13.46%, while Palantir has 9.05% potential upside based on Wall Street’s average price targets.
