Scion Asset Management founder Michael Burry adds Micron to semiconductor shorts, targeting a 30% correction amid extreme technical overextension.
Michael Burry disclosed a new short position in Micron Technology at $1,051.87 per share, joining existing bets against NVIDIA, Applied Materials, and the iShares Semiconductor ETF. The move targets a 30% correction in chip stocks, citing Micron’s 242% year-to-date rally as the most extreme technical extension above its 200-day moving average since 1984.
Micron’s Q4 revenue guidance of $50 billion and a consensus price target of $1,486 underpin the bull case Burry aims to challenge. The semiconductor ETF (SOXX) has surged 86% year-to-date, amplifying his thesis of a cyclical downturn. Burry noted the puts appeared expensive, opting for direct short exposure with plans to add options if volatility declines.
The disclosure arrives as U.S. markets reopen after the July 4 holiday, with all targeted stocks posting strong year-to-date gains. Burry’s contrarian call hinges on historical cycle patterns and stretched valuations in the sector.