Burry Shorts Micron at $1,051.87 on July 2, Warns of 30% Correction Amid AI Bubble

According to Michael Burry's Substack post on July 2, the investor behind "The Big Short" established a short position in Micron Technology (MU) at $1,051.87 and simultaneously increased positions in five existing holdings. Micron shares fell 5.49% to close at $975.56 on Thursday.

Burry cited extreme valuations and technical extremes in Micron's recent rally, noting the stock's distance above its 200-day moving average represents the highest level since 1984, "even exceeding the peak of the dot-com bubble." He criticized Micron's long-term profitability metrics, citing a median return on invested capital of just 4% and median return on equity of 7%. The short aligns with Burry's broader bearish semiconductor thesis announced June 30, predicting AI-related chip stocks face 30% correction pressure. He increased positions in PayPal, Sprout Social, Zoetis, Fannie Mae, and Freddie Mac.