Michael Burry reportedly increases short positions in Micron, Nebius,SOXX and Palantir

AT A GLANCE

Michael Burry said the memory chip shortage could ease within 2 the year and increased his short positions in multiple AI-related securities.

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“The Big Short” Michael Burry increases short positions in Micron, Nebius,SOXX and Palantir, saying the memory-chip shortage may fade within 2 year

BlockBeats news,September 24, according to CNBC's report, “The Big Short” investor Michael Burry believes that the current AI-driven structural shortage of memory chips is only temporary. As capacity gradually catches up with demand over the next 2 years, the memory-chip industry may return to its traditional cyclical fluctuations, putting pressure on technology stocks that have driven the Nasdaq 100 Index to record highs.

Burry said that he is increasing his short positions in memory-chip manufacturer Micron Technology,AI cloud computing platform Nebius, iShares Semiconductor ETF（SOXX) and data analytics software company Palantir, while continuing to hold put options. However, if the relevant assets rise to new highs again, he will consider covering part of his short positions.

Burry cited the view of Acer CEO Chairman Jason Chen, who said that China’s memory-chip capacity continues to increase, making a long-term shortage difficult to sustain. Prices of some products are currently rising, while others have already begun to decline. Sujai Shivakumar, an economist at the Center for Strategic and International Studies, likewise warned that China’s DRAM and NAND capacity expansion may ease short-term supply pressures, but could also bring risks including oversupply, low-price dumping, trade frictions, and greater market dependence on Chinese suppliers.

Burry also described the Nasdaq 100 Index as “at historically elevated valuation levels and highly concentrated by weight.” The index rose nearly 1%on Tuesday, closing at a record high of 30,732 points, and has risen on 6 of the past 5 trading days.BTIG Technical analyst Jonathan Krinsky noted that the Nasdaq 100 Index has been roughly flat since mid-August, but the proportion of constituent stocks trading above their 200-day moving averages has fallen from 77%to 56%, indicating that the overall strength of AI trading is weakening.

While expanding his short positions, Burry also increased his holdings in QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock, and MercadoLibre. He said these stocks have undergone substantial corrections and their current prices are attractive; the related holdings have now reached the full position size he had planned.

Original link https://m.theblockbeats.info/flash/368793

Key points

BlockBeats cited CNBC reports stating that Michael Burry believes AI the construction-driven structural shortage of memory chips is only temporary.
Burry said he is increasing his short positions in Micron Technology, Nebius,SOXX and Palantir, while continuing to hold put options.
Burry said he would consider covering part of his short positions if the related securities rise to new highs again.
Burry cited Acer CEO Chairman and CEO Jason Chen's view that China's memory chip capacity continues to increase, making a prolonged shortage difficult to sustain.
The report mentioned that China's DRAM and NAND capacity expansion could bring risks including oversupply, low-price dumping, trade friction, and growing market dependence on Chinese suppliers.
Burry described the Nasdaq 100 index as being at historically high valuation levels and highly concentrated in its weighting.
Burry also increased his holdings of QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock, and MercadoLibre, saying these holdings had reached their planned full positions.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Burry's core view is that the current supply shortage of memory chips may ease as production capacity increases, and the industry may again experience cyclical fluctuations. Therefore, he has taken or increased bearish positions in Micron, Nebius,SOXX and Palantir, while buying other stocks that have already undergone substantial corrections.

Why it matters to readers

If memory-chip supply increases and exceeds demand, prices for related products and corporate earnings expectations may come under pressure; the report also noted that AI market breadth in related technology stocks is weakening.

Short selling is a bet that an asset’s price will fall; a put option is the right to sell an asset under agreed conditions. Burry’s trades reflect an individual judgment and do not mean that the market outcome is predetermined.

Risks and unknowns

The report does not specify the size of Burry’s short positions, the timing of the trades, or the specific instruments used.
Whether the storage chip shortage will 2 abate within the year remains Burry's assessment and has yet to be verified.
The report did not provide specific details on China's DRAM and NAND capacity expansion.
Nasdaq 100 The subsequent performance of the index and related stocks cannot be determined solely based on this report.

Michael Burry reportedly increases short positions in Micron, Nebius,SOXX and Palantir

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