Michael Burry, the real-life inspiration for the protagonist in the film The Big Short who accurately predicted the 2008 US subprime mortgage crisis, stated on Substack on July 2 that he has shorted Micron Technology stock at $1,051.87; the reason for shorting directly instead of using put options is that "put options look too expensive." The Philadelphia Semiconductor Index plunged 12% in two days.
Burry Directly Shorts Micron Stock Instead of Using Put Options
Michael Burry stated in a Substack post that he chose to directly short Micron Technology stock at $1,051.87 instead of using put options because "put options look too expensive." This is the latest short position Burry has publicly disclosed, following his disclosure on June 30 of short positions in NVIDIA, Applied Materials, and the SOXX ETF.
Five Specific Arguments in Burry's Assessment of Micron Stock
According to Burry's public Substack post, his arguments for shorting Micron include five specific points:
Historical Drawdown Record: Over the past 42 years, Micron stock has experienced 34 major drawdowns exceeding 30%. Burry said Micron "perfectly exemplifies cyclicality."
Extreme Moving Average Deviation: The current deviation of the stock price from the 200-day moving average is the highest since 1984, "not even seen at the peak of the dot-com bubble."
Weak Long-Term Profitability: Median ROIC of 4%, median ROE of 7%. Burry stated these metrics are "frankly terrible."
Upside Driven by Non-Fundamental Factors: Burry stated the recent rally is driven by "FOMO, the greater fool theory, and commitment bias," not rational analysis.
Industry Competitive Structure: Micron is no longer dominant in the storage space; Korean manufacturers' capital expenditure plans largely determine that Micron must continue heavy investment.
Burry's Overall Short Positions in the Semiconductor Sector
On June 30, 2026, Burry disclosed on Substack that he holds short positions in NVIDIA, Applied Materials, and the iShares Semiconductor ETF (SOXX); stating his personal judgment that AI-related chip stocks will face a 30% correction.
This shorting of Micron Technology stock is consistent with the overall short position on the semiconductor sector mentioned above. The above are all Burry's personal investment judgments and do not constitute investment advice.
Philadelphia Semiconductor Index Falls 12% in Two Days: Micron Down 5.5% on Thursday
The Philadelphia Semiconductor Index plunged a cumulative 12% over the two trading days before and after Burry's statement; Micron Technology stock fell 10.6% on Wednesday and a further 5.5% on Thursday, for a cumulative two-day decline of approximately 15.6%. Prior to this, Micron stock had still surged more than twofold year-to-date.
The backdrop for Burry's statement included US June nonfarm payroll data far below expectations (adding 57,000, far below the estimate of 110,000) and news about Meta's cloud business raising concerns about AI infrastructure investment. These macroeconomic factors also contributed to the pressure on the semiconductor sector during the same period.
Frequently Asked Questions
Who is Michael Burry and why are his short-selling moves highly watched by the market?
Michael Burry is an investor and the real-life inspiration for the protagonist in the film The Big Short. He accurately established a short position in credit default swaps before the 2008 US subprime mortgage crisis. His publicly disclosed short-selling moves have always been closely watched by the market; this is a high-profile appearance following his warning about the Terra LUNA crash in 2022, but his personal views do not constitute investment advice.
Why did Burry choose to short directly instead of using put options?
According to Burry's Substack statement, the reason for directly shorting Micron Technology stock is that "put options look too expensive" (the premium on put options is too high), so he chose to hold a short position directly at a price of $1,051.87.
How has Micron Technology stock performed recently in the market, and what is its year-to-date cumulative gain?
According to reported data, Micron stock fell 10.6% on Wednesday and a further 5.5% on Thursday; the Philadelphia Semiconductor Index plunged a cumulative 12% over two days. Nonetheless, Micron stock has still surged more than twofold year-to-date; specific real-time stock prices are based on official market quotes.
