Michael Burry Shorts Micron on AI-Driven Rally, MU Extends 248% YTD Gain

According to Burry's Substack post on Thursday (July 2), renowned investor Michael Burry has opened a short position in Micron Technology (MU), stating the memory chipmaker's stock has reached historically extreme levels driven by AI hype and investor FOMO rather than fundamentals. Burry noted that MU shares are now more extended above their 200-day moving average than at any point since 1984, citing the company's weak capital returns—median ROIC of 4% and ROE of 7%—and a cyclical history marked by 34 drawdowns exceeding 30% over 42 years.

Alongside the MU short, Burry added to long positions in PayPal Holdings (PYPL) at $45.31, Sprouts Farmers Market (SFM) at $89.33, Zoetis (ZTS) at $74.80, Fannie Mae (FNMA) at $6.15, and Freddie Mac (FMCC) at $5.69.