Michael Burry Shorts Semiconductor Stocks Amid Memory Glut Fears

Investor Michael Burry is increasing short positions on several technology and semiconductor companies, including Micron Technology, Nebius Group, Palantir, and the SOXX iShares semiconductor ETF. Burry argues that the structural shortage of memory chips currently driving the AI build-out is temporary and that the sector will return to a cyclical boom-and-bust pattern as production catches up over the next two years.

To support his thesis, Burry cites reports of increasing Chinese memory chip production capacity. This view is echoed by Sujai Shivakumar of the Center for Strategic and International Studies, who warned that Chinese overcapacity could become a memory-market risk. Jason Chen, CEO of Acer, has also stated that Chinese production capacity has been consistently increasing and that there is no shortage issue.

While the Nasdaq-100 recently reached an all-time high of 30,732, Burry describes the index as historically overvalued and top heavy. In contrast to his semiconductor bets, he is increasing long positions in companies such as QXO, Build-A-Bear, Sprouts, Birkenstock, and Mercado-Libre, citing attractive market prices following significant corrections.