'Big Short' Michael Burry Adds to Short Positions in Micron, Nebius, SOXX and Palantir, Says Memory Chip Shortage May Fade Within Two Years

BlockBeats news, September 24, according to CNBC, "Big Short" investor Michael Burry believes that the current structural shortage of memory chips driven by AI buildout is only temporary. As capacity gradually catches up with demand over the next two years, the memory chip industry may return to its traditional cyclical ups and downs, and this could pressure the tech stocks that have driven the Nasdaq 100 to record highs.

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

Citing Acer CEO Jason Chen, Burry said China's memory chip capacity continues to increase, making a long-term shortage difficult to sustain, with prices for some products currently rising while others have already begun to fall. Sujai Shivakumar, an economist at the Center for Strategic and International Studies, also warned that although China's DRAM and NAND capacity expansion may ease short-term supply pressure, it could also bring risks such as oversupply, low-price dumping, trade friction, and deeper market dependence on Chinese suppliers.

Burry also described the Nasdaq 100 as "at historically overvalued levels with highly concentrated weightings." The index rose nearly 1% on Tuesday, closing at a record high of 30,732 points, gaining in 5 of the past 6 trading sessions. BTIG technical analyst Jonathan Krinsky pointed out that the Nasdaq 100 has been roughly flat since mid-August, but the proportion of constituents above their 200-day moving average has fallen from 77% to 56%, indicating that the overall strength of the AI trade is weakening.

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