TLDR
- Michael Burry added to shorts in Micron, Nebius, Palantir and the iShares Semiconductor ETF.
- Burry says rising memory production could eventually pressure chip prices.
- Acer CEO Jason Chen said some memory remains scarce, while DDR4 already has more sellers than buyers.
- Burry also questioned high valuations and concentration in the Nasdaq 100.
- He increased long positions in QXO, Build-A-Bear, Sprouts, Birkenstock and MercadoLibre.
Michael Burry is increasing his bearish bets on several of the market’s biggest AI and semiconductor trades, adding to short positions in Micron Technology, Nebius Group, Palantir Technologies and the iShares Semiconductor ETF.
Burry said in a September 22 Substack post that he increased the positions “in some size.” His latest move extends a broader bet that expanding semiconductor production could eventually challenge the supply shortage that has helped push memory and AI-related stocks higher.
Burry Sees Memory Supply Catching Up
The investor highlighted comments from Acer CEO Jason Chen, who questioned whether current memory shortages can continue for an extended period. Chen said some products, including LPDDR5 and DDR5 9600, remain difficult to source, while DDR4 now has “more sellers than buyers.”
Burry said those comments align with his own view of the memory cycle. Producers have shifted capacity toward high-bandwidth memory used in AI data centers, but conventional memory production is beginning to increase again.
Chinese manufacturers could add further supply. Burry also pointed to a report that China’s CXMT had achieved DDR5 manufacturing yields above 90%, describing the claim as important if confirmed.
The central risk in Burry’s thesis is that supply eventually catches up with demand, pushing memory prices lower and squeezing the valuations of companies that have benefited from the AI spending boom.
Micron has been one of the strongest-performing memory stocks in 2026, supported by demand for HBM and other AI-related products. That strength also means investors remain divided over whether the cycle has further to run or has already priced in too much growth.
Burry Adds Five Long Positions
Burry is not broadly retreating from equities. He also added to positions in QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock and MercadoLibre after saying their share prices had corrected sharply.
He described the five as attractive at current levels and said each had become a full position in his portfolio.
Burry also called the Nasdaq 100 historically expensive and heavily concentrated, although he stopped short of declaring an immediate market top while the index remains near record levels.
His semiconductor trade remains a contrarian bet against strong AI demand and investor enthusiasm. Whether it works will depend heavily on how quickly memory supply expands and whether AI-related demand remains strong enough to absorb the extra capacity.
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