The Real Reason Michael Burry Shorted Micron Stock
In a Nutshell
Michael Burry shorted Micron at $151.87 because its 200%+ rally and stretched technicals signal a likely 30% AI-driven correction, citing terrible capital returns and cyclical destruction in three of every four quarters. Micron's fundamentals show $50B net income and a 21.8 P/E, with analysts targeting $1,500, but Burry warns FOMO buying around sold-out HBM masks structural weakness. Shorting carries unlimited risk, and any sustained break below QQQ or S&P support would validate the thesis and create better long entries in quality semis afterward.
These notes were generated by AI and may contain inaccuracies.
Michael Burry is shorting Micron Technologies. This update focuses on Burry's position rather than a general market update. Burry is famous for The Big Short, where he shorted the housing bubble and made his clients hundreds of millions of dollars. He has called out overbought and overvalued stocks in the past, but has been wrong many times. No one has a 100% success rate, and just because Burry shorts a stock does not mean others should follow.
Michael Burry no longer runs a public firm and does not have to disclose positions to the SEC. The short position against Micron was shared in his Substack post dated July 2nd. Burry stated that the puts seemed expensive, so he shorted the stock directly and would add puts if volatility eases. His disclosed entry price is $151.87 per share. The position does not appear aggressive, and he is open to adding more if the direction becomes favorable. The size of the short was not disclosed.
Micron is up over 200% in 2026 alone, moving from lows of $290 per share to highs of $1,255, with extended hours highs reaching $1,330. It ranks as one of the best performing stocks of 2026. Year-to-date through July 2nd, Micron shares are up 242% with a market cap of nearly $1.17 trillion.
According to InvestingPro software and fair value analysis, Micron shows 6.5% downside based on current fundamentals. The P/E ratio is 21.8 times earnings, which is not considered very expensive relative to competition. The forward P/E is even lower. The company generates $50 billion in net income and holds a market cap of $1.1 trillion. Despite strong fundamentals and price performance, Burry is shorting the stock.
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