Legendary Short Seller Michael Burry Warns AI Memory Super-Cycle Reversal as Micron Valuation Collapses

According to Bloomberg, renowned investor Michael Burry recently announced a short position on Micron (MU-US) via Substack, arguing that the memory chip maker typifies cyclical industries and warning that the AI memory super-cycle may be unwinding. Micron's forward P/E has plummeted from 11x in late June to 7x as of last week, despite management providing five-year customer contracts and securing long-term revenue visibility.

The memory chip industry faces mounting supply pressures. South Korea's government announced a 135 trillion won ($880 billion) investment plan including new chip fabs for Samsung and SK Hynix, while China's Yangtze Memory Technologies (YMTC) is preparing an IPO targeting 29.5 billion yuan ($4.3 billion)—potentially China's largest since 2022. Morgan Stanley data shows China will account for 30% of global DRAM wafer capacity additions by 2028. Barclays estimates the current DRAM shortage could end as early as next year, triggering oversupply.