Michael Burry, the investor whose story was dramatized in the film "The Big Short," escalated his skepticism toward the market rally tied to artificial intelligence by opening a short position against Micron Technology. According to MarketWatch, Burry established the short on July 1 at a per-share price of $1,051.87.
Burry attributed the stock's recent surge to fear of missing out, the so-called "bigger fool" dynamic, and distortions from public commitments. "Yesterday I took a short position in a security that has already weakened significantly because I believe I can see the dynamics clearly," he wrote.
Price moves and the prior rally
Micron's shares rose about 697% over the past year and 241% so far in 2026. After Micron reported quarterly results on June 25 that beat analysts' expectations, the stock climbed as high as $1,213. In the following sessions the price swung, and it closed Thursday at $975. Reports also note that Micron and SanDisk shares fell nearly 11% on Wednesday.
Broader positioning and related trades
This week Burry did not limit his activity to Micron: he increased positions against PayPal, Sprouts Farmers Market, Zoetis, and the mortgage-related entities Fannie Mae and Freddie Mac. Earlier in the week he had also taken short positions against Tesla, Caterpillar, Applied Materials, and the iShares Semiconductor ETF.
Demand for data-center power equipment tied to AI workloads has benefited companies like Caterpillar: the firm's stock is up roughly 68% so far this year, in part due to growth in generators and related equipment.
Industry developments affecting prices
Burry also flagged a major planned investment from South Korea: Samsung and SK Hynix reportedly intend to create a new semiconductor hub with investments exceeding $500 billion, a development he said he views as a possible beginning of the end for the recent run-up. Analysts point to other news that may have contributed to recent declines, including a report that Meta is considering selling excess cloud capacity.
At the same time, reports that Apple is involving Chinese suppliers to ease a memory-chip shortage have circulated. Some analysts warn that if other technology giants follow suit, the sharp and, in their view, unjustified jump in memory prices could ease, increasing financial pressure on companies that have benefited most from the price surge.
Why this matters
Burry's short against Micron is notable because it comes from a prominent investor known for contrarian positions. His move highlights concerns about whether the rapid, large-scale gains in semiconductor and AI-related stocks reflect sustainable fundamentals. Ongoing industry investment plans, supply-chain adjustments, and companies' capacity-management decisions are likely to keep volatility elevated in the memory-chip market and across parts of the AI ecosystem.
