"Big Short" semiconductor sector adds another member to the bearish list! Berri shorts Micron Technology (MU.US), warning that cyclical highs have surpassed the dot-com bubble era.

Prominent investor "The Big Short" Michael Burry has opened a short position in Micron Technology, Inc. (MU.US) while also increasing his holdings in five existing long positions. In his Substack post, Burry stated that he has shorted Micron at a price of $1051.87 per share, attributing the recent surge in the chip stock to "fear of missing out (FOMO), greater fool theory, and confirmation bias." Burry pointed out, "No one interprets 'cyclical' quite like Micron." He added that the stock has experienced 34 drawdowns of over 30% in the past 42 years. He noted that the current level at which the company's stock price is above its 200-day moving average is unprecedented since 1984, even surpassing the levels seen during the peak of the internet bubble. The investor mentioned that the 'puts' for Micron seem expensive and stated, "If stability and a reduction in volatility lead to puts becoming cheaper, I will seek to increase my put position." Since the beginning of 2026, Micron's stock price has skyrocketed over 240%, but has declined by around 10% in the past month. In the same Substack post, Burry mentioned that he has increased his positions in PayPal (PYPL.US), Sprouts Farmers Market (SFM.US), Zoetis (ZTS.US), Fannie Mae (FNMA.US), and Freddie Mac (FMCC.US). "The Big Short" shorts the semiconductor sector Earlier this week, Burry also revealed short positions in other semiconductor stocks, including NVIDIA Corporation (NVDA.US), Applied Materials, Inc. (AMAT.US), and iShares Semiconductor ETF (SOXX), anticipating a correction in AI-related chip stocks. Driven by the continuous surge in AI computing power demand, the semiconductor sector has become one of the strongest performing sectors in the US stock market this year. The Philadelphia Semiconductor Index has risen by 88% in the second quarter, with a 101% increase in the first half of the year, potentially setting a record for the best annual performance. At the time, Burry believed that the valuations of the semiconductor sector were at extreme levels. He stated that SOXX is a "rare and easily identifiable overvalued index," with deviations from the 200-day moving average reaching the highest level since 2000. In fact, Burry first purchased SOXX puts in April of this year, and has now further expanded his short position in the AI industry chain. Analysts believe that as AI concept stocks experience significant increases, more investors are beginning to focus on whether valuations have priced in future growth expectations. Burry's concentrated short positions in the AI industry leaders have once again sparked discussions in the market about the sustainability of the AI trend.