Michael Burry Just Shorted Micron (MU) Stock — Here’s Why He Thinks It’s a Bubble

TLDR

• Michael Burry has shorted Micron (MU) at $1,051.87 per share, calling the stock’s rally driven by “fear of missing out” and “greater fool theory.”
• Burry argues MU is in bubble territory, pointing to weak returns on capital and its highly cyclical nature as a pure DRAM play.
• MU has surged over 240% since the start of 2026, but is down around 10% in the past month.
• The MU short is part of a wider AI short basket that includes Nvidia, Tesla, Applied Materials, Caterpillar, and the SOXX ETF.
• Burry also added to long positions in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae, and Freddie Mac in the same post.

Michael Burry, the investor made famous by “The Big Short,” has opened a direct short position in Micron Technology (MU), disclosing the move in a post on his Substack.

Micron Technology, Inc., MU

Burry shorted MU at $1,051.87 per share. He said he avoided options because puts were too expensive at the time, but added he would look to layer in puts if volatility settles.

Micron has climbed over 240% since the start of 2026. Even so, the stock has pulled back roughly 10% over the past month.

Burry described the rally as driven by “fear of missing out, greater fool theory, and public commitment bias.” He said MU is now more extended above its 200-day moving average than at any point since 1984 — including the dot-com peak.

He called Micron “cyclical like no other,” pointing to 34 drawdowns of more than 30% over the past 42 years. That’s a track record that tends to get ignored when sentiment is running hot.

Why Burry Sees a Bubble

Burry’s core argument centers on capital returns. He described Micron’s return on invested capital and return on equity as “terrible,” saying the company destroys capital in roughly one out of every three quarters.

He also flagged massive global chip investment as a red flag rather than a tailwind. South Korea alone has announced a semiconductor plan worth over $500 billion. Burry’s view: when that much capital floods an industry, real returns become harder to earn, not easier.

He compared the current AI chip frenzy to the dot-com era, saying too much money is chasing too little proven profit.

Part of a Larger AI Short

The Micron position isn’t a standalone bet. Burry has been building out what he calls an AI short basket.

Earlier this week, he disclosed short positions in Nvidia (NVDA), Applied Materials (AMAT), Caterpillar (CAT), Tesla (TSLA), and the iShares Semiconductor ETF (SOXX).

On the long side, Burry added to PayPal (PYPL) at $45.31, Sprouts Farmers Market (SFM) at $89.33, Zoetis (ZTS) at $74.80, Fannie Mae (FNMA) at $6.15, and Freddie Mac (FMCC) at $5.69.

Micron’s stock was down around 5.5% on the day the disclosure was reported.

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