Michael Burry adds to Micron, Palantir and chip ETF shorts; Micron already trades near 9 times its earnings pace

Michael Burry, the investor known for betting against the housing market before the 2008 crisis, said he is increasing his short positions on Micron Technology, Nebius Group, Palantir and the iShares Semiconductor ETF (SOXX), CNBC reported, citing his Substack post. "Over the next two years this shortage will blow off as production catches up, and memory will have a down cycle again," he wrote. He also said he continues to hold his puts and would look to cover "should the market take these up to new highs again."

Burry pointed to comments from Acer chief executive Jason Chen, who said Chinese memory production capacity keeps rising. Chen expects pricing pressure to become visible from late 2027, Stocktwits reported via Yahoo Finance. Burry also said he bought more QXO, Build-A-Bear, Sprouts, Birkenstock and MercadoLibre, which are now full positions.

How the names traded Wednesday

Source: Nasdaq. The whole market was lower on Wednesday as the 10-year Treasury yield touched its highest level since 2007, so the chip declines cannot be pinned on Burry alone; see our market story. Palantir rose despite being on his list.

What the headline misses: the market already half agrees

"Burry shorts Micron" sounds like a lone contrarian call against a stock priced for a permanent boom. The numbers say otherwise. Micron guided the quarter that ended in August to non-GAAP earnings of about $31 a share. Four quarters at that pace is about $124, and at $1,079.69 the stock trades near 8.7 times that run rate (our calculation). A multiple that low for a company whose revenue is still climbing is how the market prices earnings it does not expect to last.

Cash flow tells the same story. Micron's forward free cash flow estimate is $130 billion, up from $4.7 billion in November of last year, according to FactSet data cited by CNBC. Against a market value of about $1.22 trillion on Nasdaq's figures, that is roughly 9.4 times. Investors are not paying for decades of these margins. The disagreement between Burry and the market is less about whether memory turns down than when, and how hard.

Burry's own timeline, two years, and Acer's, late 2027, broadly line up. Wall Street's broader signal is mixed: BTIG's Jonathan Krinsky noted the share of Nasdaq-100 stocks above their 200-day moving average has fallen from 77% to 56% since mid-August even as the index sits near records, CNBC reported.

What traders are watching

Micron reports fiscal fourth-quarter results on Sept. 30. Analysts expect $31.24 a share, barely above guidance, as we laid out in our preview. Any comment on contract pricing, Chinese supply and the November-quarter outlook will speak directly to Burry's thesis. For businesses buying laptops and servers, a turn in memory prices would ease one of the costs behind higher hardware prices.

Sources: CNBC; Yahoo Finance/Stocktwits; Nasdaq quote and summary data; Micron's June 24, 2026 earnings release. Short positions and puts can be changed at any time without disclosure. This is market information, not investment advice.