Michael Burry Expands Short Positions in Micron (MU), Palantir, and Nebius Amid Memory Supply Concerns

Key Takeaways

• Michael Burry expanded short positions in Micron, Palantir, Nebius, and the iShares Semiconductor ETF significantly.
• The investor warns that increasing memory manufacturing capacity may ultimately drive down chip valuations.
• Acer’s CEO Jason Chen noted that while some memory types remain scarce, DDR4 now sees more supply than demand.
• Burry also expressed concerns about elevated valuations and excessive concentration in the Nasdaq 100 index.
• Despite bearish semiconductor bets, he expanded holdings in QXO, Build-A-Bear, Sprouts, Birkenstock, and MercadoLibre.

Michael Burry is ramping up his contrarian wagers against some of the market’s hottest AI and semiconductor names, substantially expanding short positions in Micron Technology, Nebius Group, Palantir Technologies, and the iShares Semiconductor ETF.

Micron Technology, Inc., MU

In a Substack post dated September 22, Burry revealed he had increased these positions “in some size.” The move represents a continuation of his thesis that surging semiconductor manufacturing capacity will eventually undermine the supply constraints that have propelled memory and AI-focused equities to elevated levels.

Memory Production Cycle Turning, Burry Warns

The prominent investor drew attention to recent remarks from Acer CEO Jason Chen, who raised doubts about the sustainability of ongoing memory shortages. According to Chen, certain products like LPDDR5 and DDR5 9600 continue to face supply constraints, yet DDR4 has already transitioned to a state where “more sellers than buyers” exist in the market.

Burry indicated these observations support his perspective on the memory industry cycle. While manufacturers have redirected production toward high-bandwidth memory essential for AI datacenter operations, traditional memory production is now accelerating once more.

Chinese production capabilities represent another potential supply catalyst. Burry referenced reports suggesting China’s CXMT had reached DDR5 production yields exceeding 90%, characterizing this development as significant if verified.

The core assumption underlying Burry’s position is that expanding supply will eventually outpace demand growth, depressing memory pricing and compressing valuations for companies riding the AI infrastructure wave.

Micron stands among the top-performing memory semiconductor stocks in 2026, buoyed by robust appetite for HBM and additional AI-linked products. However, this rally has created division among market participants regarding whether the upcycle has additional upside or has already incorporated excessive growth expectations.

Burry Simultaneously Expands Five Long Positions

Despite his semiconductor pessimism, Burry isn’t abandoning equities altogether. He simultaneously increased stakes in QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock, and MercadoLibre following significant price declines in these names.

He characterized all five companies as compelling opportunities at present price levels, noting that each now represents a full-sized position within his investment portfolio.

Burry also highlighted that the Nasdaq 100 trades at historically stretched valuations with problematic concentration levels, though he refrained from predicting an imminent market peak while the index hovers near all-time highs.

His semiconductor short remains a decidedly contrarian position against powerful AI demand trends and widespread investor optimism. The ultimate success of this strategy hinges on the pace of memory supply expansion and whether AI-driven demand proves resilient enough to absorb the incoming production capacity.