Michael Burry Shorted Semiconductor Stocks
Investor Michael Burry has taken bearish positions against Micron Technology and the iShares Semiconductor ETF.
Updated on Sept. 22, 2026 in Semiconductors
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Michael Burry has opened short positions against Micron Technology and the iShares Semiconductor ETF. He also holds bearish stakes in companies including Nvidia, Applied Materials, Nebius Group, and Palantir.
Why it matters
The shifts in market positions highlight growing concerns over a potential reversal in the semiconductor cycle. Manufacturers have tightened the supply of conventional memory by prioritizing high-bandwidth products intended for AI development.
The iShares Semiconductor ETF includes significant weightings for key industry players, with Micron at 8%, Nvidia at 7.5%, and Applied Materials at 3.7%. These weightings are currently subject to market volatility as manufacturers pivot capacity.
The players
Michael Burry
He is an American investor and physician who is widely recognized for identifying and profiting from the 2008 United States housing market subprime mortgage crisis.
ChangXin Memory Technologies
The company is a prominent Chinese manufacturer focused on the development and production of dynamic random-access memory semiconductors.
Micron Technology
This American producer of computer memory and computer data storage is a central entity in the global semiconductor market.
Nvidia
A multinational technology company that specializes in designing graphics processing units and application programming interfaces for data centers and gaming.
Applied Materials
The corporation provides manufacturing equipment, services, and software for the semiconductor, display, and related industries.
The details
The moves arrive as Chinese supplier ChangXin Memory Technologies has successfully mass-produced its fifth-generation memory platform, signaling an influx of competitive volume into the market. This increased supply from Chinese manufacturers is expected to offset some of the current memory constraints.
Timeline
September 22, 2026: Official publication of the investor's current position shifts.
Late 2027: Projected timeframe when increased Chinese capacity is expected to exert downward pressure on prices.
The Tech Race
This move follows a pattern set by previous downturns in the semiconductor cycle where supply gluts led to sharp price corrections. The entry of new capacity from international manufacturers represents a departure from recent trends where AI-driven demand dictated market dominance.
Investors tracking the tech sector may see increased volatility in semiconductor ETF performance as institutional bearishness rises. Average consumers may eventually benefit from lower memory prices if the projected increase in Chinese manufacturing capacity successfully lowers costs by late 2027.
The takeaway
The recent activity from prominent investors underscores the cyclical nature of the technology hardware market. Readers should remain aware that rapid shifts in supply chains often precede changes in both stock performance and product pricing.
Further reading
For more context on the industry, visit the Semiconductors section.
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