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Key Takeaways
- Michael Burry expanded short positions targeting Micron, Palantir, Nebius, and the iShares Semiconductor ETF.
- The investor warns that increasing memory chip production may ultimately push prices down.
- Acer’s CEO Jason Chen noted mixed conditions: some memory types remain tight while DDR4 shows oversupply.
- Burry criticized the Nasdaq 100’s elevated valuations and heavy concentration in top holdings.
- The investor expanded long holdings in QXO, Build-A-Bear, Sprouts, Birkenstock, and MercadoLibre.
Michael Burry is amplifying his contrarian stance against some of the market’s hottest AI and semiconductor names, expanding short bets on Micron Technology, Nebius Group, Palantir Technologies, and the iShares Semiconductor ETF.
In a September 22 Substack update, Burry revealed he boosted these positions “in some size.” The expansion signals his conviction that growing semiconductor manufacturing capacity will eventually disrupt the supply constraints that have propelled memory and AI stock valuations higher.
Memory Production Expansion Could Shift Market Dynamics
The famed investor referenced observations from Acer CEO Jason Chen, who raised doubts about the sustainability of current memory shortages. According to Chen, certain products like LPDDR5 and DDR5 9600 continue facing supply constraints, but DDR4 has already flipped to a buyer’s market with “more sellers than buyers.”
Burry views these dynamics as confirmation of his memory cycle thesis. While manufacturers have pivoted production toward high-bandwidth memory for AI data centers, traditional memory output is starting to ramp up again.
Chinese production capacity represents another potential supply source. Burry referenced reports suggesting China’s CXMT achieved DDR5 manufacturing yields exceeding 90%, calling the development significant if verified.
The core of Burry’s investment thesis rests on supply eventually overtaking demand, driving memory prices downward and compressing valuations for companies riding the AI infrastructure wave.
Micron has emerged as one of 2026’s top-performing memory manufacturers, buoyed by robust demand for HBM and other AI-focused products. However, this impressive run has created division among investors about whether the rally has room to continue or has already overshot sustainable growth expectations.
Five New Long Positions Added to Portfolio
Despite his bearish semiconductor stance, Burry isn’t abandoning equities entirely. He established positions in QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock, and MercadoLibre following significant price pullbacks.
Burry characterized these five companies as compelling value opportunities at present prices, noting that each now represents a full-sized position within his portfolio.
He also criticized the Nasdaq 100 as historically overvalued and excessively concentrated in its top holdings, though he avoided predicting an imminent market peak while the index trades near all-time highs.
His semiconductor short represents a bold contrarian position against prevailing AI demand trends and investor sentiment. Success hinges on whether memory supply expansion accelerates quickly and if AI-driven demand proves insufficient to absorb the additional production capacity.
The post Michael Burry Expands Short Positions in Micron (MU), Palantir, and Nebius Amid Memory Supply Surge Concerns appeared first on Blockonomi.
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