Michael Burry, widely known as ‘The Big Short’ investor who predicted the 2008 housing market collapse, has opened a new short position in Micron (NASDAQ: MU).
According to a post on Substack titled ‘Trading Post July 2, 2026,’ Burry initiated the short Micron position, reportedly at $1,051.87 per share, arguing that the memory chipmaker’s rally (209% year-to-date) has reached extreme levels.
Elaborating on the decision, the investor claimed that the company’s valuation, technical setup, and long-term cyclical history all point to significant downside. ‘Micron defines cyclical like no other,’ he wrote, referencing the stock’s 34 drawdowns of more than 30% over the past 42 years.
Michael Burry calls Micron a ‘destroyer of capital’
Burry further argued that the shares are now trading further above their 200-day moving average (MA) than at any point since 1984 – ‘not even during the dot-com peak.’
Accordingly, the investor criticized the company’s long-term profitability, citing a median return on invested capital (ROIC) of 4% and a median return on equity (ROE) of 7%, which he described as ‘terrible.’
Highlighting his displeasure further, Burry stated that ‘Micron is a destroyer of capital’ at least once every three quarters, pointing to decades of negative returns and free cash flow before concluding that the company’s latest rally has been driven mostly by investor psychology, not fundamentals.
“One quarter in every three, Micron is a destroyer of capital,” he wrote.
Moreover, ‘The Big Short’ also contended that Micron is no longer the industry’s memory leader. This, he argued, is because capital expenditure decisions by South Korean competitors largely determine how much the company must invest to remain competitive.
Burry keeps betting against semiconductor stocks
The Micron trade is consistent with Burry’s increasingly bearish stance on semiconductor stocks, which wiped $137 billion in a day after he made his post.
Some of his other short positions, disclosed in a June 30 post, included Nvidia (NASDAQ: NVDA), Applied Materials (NASDAQ: AMAT), and Tesla (NASDAQ: TSLA).
Discussing Elon Musk’s company, Burry argued that while shareholders did welcome Tesla’s weekly 11% climb to $420.60, it was nothing more than a temporary move ahead of a continued decline in the long run. However, the trader did not disclose the scale of his bet.
