Michael Burry Shorts Micron (MU) Amid Market Cycles - GuruFocus

Michael Burry's short position on Micron Technology reflects his deep understanding of semiconductor market cycles. As a renowned investor known for his predictive insights, Burry's decision demonstra... Read original →

Michael Burry’s short on Micron is a tactical bet against the peak of the memory cycle. Technically, after five consecutive quarters of DRAM/NAND price recovery since 2023, AI server demand is plateauing while HBM3E/HBM4 yield constraints bottleneck high-end supply—flooding mid-tier DRAM with excess inventory and dampening equipment orders from firms like Lam Research. On compliance, despite partial U.S. export waivers, Micron faces rising operational costs as its China-based OSAT partners pivot toward CXMT amid tightening U.S. controls. Samsung may respond by accelerating capex to gain share, while SK Hynix could fast-track exclusive HBM deals with NVIDIA. If global datacenter CAPEX underperforms over the next 18 months—and with new capacity from Taiwan, China and Korea coming online—memory prices may retest lows by Q1 2027, triggering sector consolidation.