Investor Michael Burry has initiated short positions on prominent companies including Micron Technology, Nvidia, Tesla, Applied Materials, Caterpillar, and the iShares Semiconductor ETF. Burry’s move comes as he raises concerns over high valuations in a market driven by artificial intelligence.

Details on Short Positions

Burry entered his short position against Micron near $1,052 per share, highlighting that this is the highest the stock has traded above its 200-day moving average since 1984. On June 30, he began sharing insights through a series of Substack posts, which included commentary on Nvidia, Applied Materials, and Caterpillar.

Burry's Critique of AI Narrative

In his posts, Burry remarked that he views the current AI enthusiasm as a form of “mass addiction.” He referenced a line from the Joker in the 1989 film Batman, stating, “the end is nigh,” suggesting a potential downturn ahead for the sector. He also presented charts illustrating that AI semiconductor stocks have outperformed broader components of the cloud industry.

Micron’s Financial Performance

Despite Burry’s criticisms, Micron has reported strong financial results. For the quarter ending May 2026, the company achieved revenues of $41.5 billion, reflecting a 346% year-on-year increase. Notably, their gross margin improved to 84.6%, and net income surged to $28.2 billion from $1.9 billion in the same period last year. Free cash flow also saw a significant increase, amounting to $17.6 billion.

Chief Business Officer Sumit Sadana remarked during the earnings call on June 24 that customer demand for memory chips is presently “well above our ability to supply” across nearly all product categories through 2028. Micron stock has demonstrated a remarkable return of nearly 1,000% over the past three years and is up about 260% in 2026, trading at roughly $976 per share.

Valuation Concerns Highlighted

Burry has pointed out that Micron's stock has experienced multiple significant drawdowns, and he expressed skepticism about the sustainability of its recent performance. He characterized Micron's historical return on invested capital as low at around 4%, and noted that the stock tends to destroy capital one out of every three quarters.