Overview
- In early July Michael Burry disclosed short positions across several AI and semiconductor names and entered a direct short on Micron at about $1,051.87 per share.
- Micron reported a blockbuster quarter with $41.5 billion in revenue, an 84.6% gross margin, $28.2 billion in net income, and management saying demand outstrips supply through 2028.
- Burry frames his Micron trade as a valuation and timing bet that relies on the stock’s long history of sharp cycles and low median returns on capital rather than a claim the company is failing.
- Markets have shown increased volatility since the disclosures and investors are focusing on Micron’s next guidance and the timing of planned capacity expansions from rivals that could flood the market.
- If global firms rapidly add the hundreds of billions of dollars in memory capacity now planned, prices and margins could fall, which would pressure Micron, cloud customers buying HBM, and related chip-equipment suppliers.