Major short seller Burry increased his short positions in Micron and Nebius, arguing that "a surge in memory supply will put downward pressure on prices."

Major short seller Burry increased his short positions in Micron and Nebius, arguing that "a surge in memory supply will put downward pressure on prices."

Michael Burry significantly increased his short positions in the semiconductor sector, firmly believing that the supply and demand dynamics in the memory market were reversing.

According to Burry's own post on Substack, he has further increased his short positions in Micron Technology, AI infrastructure company Nebius, the iShares Semiconductor ETF, and Palantir, emphasizing that this operation is "quite large in scale." The immediate trigger for this move was Acer CEO John Chen's public warning that memory inventories are accumulating, new supply will gradually impact the market, and he expects price pressure to emerge around the end of 2027.

The news did not prevent related stocks from rising in the short term—Micron's stock price rose more than 2% intraday, SOXX rose about 1.5%, and Nebius and Palantir also rose slightly. This means that Burry's short positions are under pressure in the short term, but he said that Acer's CEO's statement "is consistent with my own judgment."

Short selling rationale: AI drives HBM demand, but conventional memory supply is rebounding.

Burry's core argument is that the previous shortage in the memory market was not due to a structural boom in demand, but rather a temporary mismatch in supply. He explains that major manufacturers such as Samsung, SK Hynix, and Micron shifted a significant amount of production capacity from traditional DRAM to HBM to meet the strong demand for high-bandwidth memory (HBM) from AI data centers, thus causing a shortage of ordinary memory.

However, as manufacturers gradually restore their regular memory production capacity, coupled with the release of new supply in multiple regions around the world, Burry believes that the output of "normal DRAM" is recovering, the supply-demand gap will gradually narrow, and will eventually put downward pressure on prices.

Acer CEO John Chen's statement provides further evidence for this logic. In an interview, Chen pointed out that memory inventory is accumulating, and suppliers from multiple regions are releasing more capacity to the market, which will challenge the mainstream expectation that "the current shortage will last for several years." Burry, citing the interview, wrote that although interpreting this news is "full of uncertainty," its direction is consistent with his own judgment.

Short-selling strategy: From Nvidia to Micron, the betting range continues to expand.

Burry's bearish stance on the semiconductor sector was not a sudden move. According to disclosures, his Scion Asset Management had already established large put option positions in Nvidia (NVDA) and Palantir in the third quarter of 2025, at which time the fund subsequently closed.

Entering 2026, Burry continued and expanded this trade in his personal capacity. In late June 2026, he shorted Nvidia, Applied Materials (AMAT), and the iShares Semiconductor ETF, and rolled over SOXX put options to March 2027. Two days later, he added Micron Technology to his short positions, establishing a short position directly at approximately $1,051, explaining that he chose to short directly rather than buy put options because Micron's option premiums were too expensive.

This additional investment represents a further strengthening of Burry's position on the aforementioned foundation, signifying his increasingly firm judgment that the memory cycle has peaked.

Retail investor sentiment contradicts Burry's assessment.

Judging from the immediate market reaction, retail investors did not buy into Burry's bearish logic. According to Stocktwits data, Micron and SOXX's retail sentiment was in the "bullish" range on the day Burry published his article, Nebius's retail sentiment was also bullish, and only Palantir's retail sentiment showed "bearish".

This divergence reflects the current market's overall optimistic expectations for AI-related semiconductor stocks, directly contradicting Burry's bet on oversupply and declining prices. For investors, the core question is: when will the semiconductor industry's capacity expansion truly catch up with demand—and this is precisely the key variable in Burry's entire trading logic.

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