"Big Short" Prototype: Continues Shorting Micron and Other Tech Stocks, AI Tech Stocks May Repeat Cyclical Downturn

Odaily: Michael Burry, the real-life inspiration for "The Big Short," has stated that the structural shortage of memory chips currently driving gains in AI and semiconductor sectors is only temporary. He expects that as production capacity catches up with demand over the next two years, the memory industry will re-enter a downturn cycle. Accordingly, he has increased his bearish positions in Micron Technology, Nebius, the SOXX semiconductor ETF, and Palantir, and stated that if the relevant assets hit new highs again, he would consider closing his positions, but he currently still holds put options.

Michael Burry also believes that the current memory supply crunch is related to AI demand pushing manufacturers to adjust production capacity, and that once traditional DRAM production capacity is restored, the supply-demand gap may narrow. He simultaneously warned that the current AI narrative is attracting large amounts of capital into the semiconductor sector, and expressed the view that the Nasdaq 100 index is overvalued with excessively concentrated weighting, and that capital may rotate from semiconductor and AI-related stocks into other sectors. (Etoday)