'The Big Short's' Michael Burry Targets Micron, Bets on 30% Chip Stock Correction

Michael Burry, the investor who famously predicted the 2008 housing market collapse and was profiled in 'The Big Short,' is now betting against the booming artificial intelligence sector, specifically targeting Micron Technology.

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I shorted a stock, and although it has fallen considerably, I think I know how this will end.

Burry announced on his Substack that he is shorting Micron, a key player in high-end memory chips. He believes that chip stocks, including Micron, are poised for a significant correction of around 30%. This move comes despite Micron's impressive 701.35% surge over the past year, driven by the AI frenzy.

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Micron perfectly embodies cyclicality.

He argues that Micron's rally has reached "historically extreme" levels, surpassing even the dot-com bubble at its peak. Burry pointed to the company's history, noting that Micron's stock has fallen by more than 30% in 34 out of its 42 years of existence. He highlighted a median return on invested capital of only 4% and a median return on equity of just 7%, calling the company's performance "abysmal."

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This is just abysmal.

Burry attributes Micron's strong performance to "fear of missing out (FOMO)" and speculative momentum surrounding the sell-out of high-bandwidth memory (HBM) in 2026. He also revealed he has increased his positions in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae, and Freddie Mac. Burry concluded his post with a cryptic statement: "One day there will be an announcement that is the equivalent of Thor's hammer falling, accompanied by tears of joy or despair, and everything will be clear."

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One day there will be an announcement that is the equivalent of Thor's hammer falling, accompanied by tears of joy or despair, and everything will be clear.