TLDR
- Michael Burry has expanded his short positions in Micron, Palantir, Nebius, and the iShares Semiconductor ETF.
- The investor believes increasing memory production will ultimately put downward pressure on chip valuations.
- Acer’s CEO Jason Chen noted that while certain memory types remain scarce, DDR4 now faces oversupply conditions.
- Burry expressed concerns about elevated valuations and heavy concentration within the Nasdaq 100.
- The hedge fund manager simultaneously expanded bullish stakes in QXO, Build-A-Bear, Sprouts, Birkenstock, and MercadoLibre.
Michael Burry is amplifying his contrarian stance against some of Wall Street’s most popular AI and semiconductor investments, expanding short positions across Micron Technology, Nebius Group, Palantir Technologies, and the iShares Semiconductor ETF.
In a September 22 Substack publication, Burry revealed he had significantly increased these positions. This strategy represents a continuation of his thesis that growing semiconductor manufacturing capacity will eventually undermine the supply constraints that have propelled memory and AI stocks to elevated levels.
Memory Market Approaching Supply-Demand Balance
Burry drew attention to recent statements from Acer’s CEO Jason Chen, who raised doubts about the sustainability of current memory shortages. Chen acknowledged that certain products like LPDDR5 and DDR5 9600 continue to experience tight supply, but noted that DDR4 has already shifted to a buyer’s market with excess sellers.
These observations reinforce Burry’s perspective on the evolving memory cycle. While manufacturers have pivoted production capacity toward high-bandwidth memory designed for AI data centers, traditional memory production is simultaneously ramping up.
Chinese production capacity represents an additional supply factor. Burry referenced reports suggesting that China’s CXMT has reached DDR5 manufacturing yields exceeding 90%, calling this development significant if substantiated.
The core premise of Burry’s position is that supply will eventually overtake demand, driving memory prices downward and compressing valuations for companies benefiting from the AI investment wave.
Micron has delivered exceptional performance in 2026, fueled by robust demand for HBM and additional AI-focused products. However, this strength has created division among investors regarding whether the growth cycle has room to extend or has already incorporated excessive optimism.
Burry Establishes Five New Long Holdings
Despite his bearish semiconductor stance, Burry is not withdrawing from equity markets entirely. He initiated or expanded positions in QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock, and MercadoLibre following significant price corrections.
Burry characterized these five companies as compelling opportunities at present valuations and indicated each now represents a full-sized allocation within his portfolio.
He also criticized the Nasdaq 100 as historically overvalued and excessively concentrated, though he refrained from predicting an imminent market peak while the index trades near all-time highs.
Burry’s semiconductor wager represents a bold counterposition to prevailing AI enthusiasm and robust demand trends. The outcome will largely hinge on the pace of memory supply expansion and whether AI-driven demand proves sufficient to absorb the incoming capacity additions.
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