Famed investor Michael Burry is betting against the rally in stocks tied to the artificial intelligence (A.I.) infrastructure buildout.
The investor, whose bet against the U.S. housing market was chronicled in the book “The Big Short,” has placed bearish bets against several high-flying A.I. stocks over the past week.
In his Substack newsletter and on social media, Burry said that his latest short position is in the stock of memory chipmaker Micron Technology (MU), whose share price has tripled this year.
“Yesterday I shorted one stock even though it was down a good amount because I think I have a pretty good idea how this resolves,” Burry wrote online.
Short positions are bets that a stock’s price will decline over a set period of time.
In addition to Micron’s stock, Burry also placed bets against Applied Materials (AMAT) and the iShares Semiconductor ETF (SOXX), which have both risen due to the A.I. trade.
And Burry made another short bet against electric vehicle maker Tesla (TSLA), a frequent target of the investor who is skeptical of the automaker’s business and financial disclosures.
In his online comments, Burry blamed “fear of missing out, greater fool theory, and public commitment bias,” for most of Micron’s gains over the past year.
Burry has been skeptical of the A.I. trade since last year when he revealed short bets against Palantir Technologies (PLTR) and Nvidia (NVDA).
His latest short bets have been placed as Micron’s stock fell 14% to begin this year’s third quarter. MU stock is up 698% over the past year and trading at $975.56 U.S. a share.
