Michael Burry, the investor who famously bet against the U.S. housing market before the 2008 crash and was portrayed in "The Big Short," is now wagering against the AI-fueled rally in tech stocks.
According to TheStreet, Burry has taken a short position against Micron, a maker of memory chips used in AI systems—a bet that the stock will fall. TheStreet frames the move as Burry "doubling down" on the idea that the AI chip market has inflated into a bubble, and points to his own numbers alongside Micron's financials as the basis for the call.
The Motley Fool reports that Micron is not Burry's only target. In bets published on July 4, 2026, he is positioned against three of the market's most popular names: Micron, Nvidia, and Tesla. The Motley Fool notes these are among "the market's favorite stocks," underscoring how contrarian Burry's stance is against the prevailing enthusiasm for anything tied to artificial intelligence.
Short selling is a strategy in which an investor profits if a stock's price drops rather than rises. When a figure with Burry's track record—correctly calling one of history's biggest market collapses—publicly bets against a whole category of stocks, it draws attention because it challenges the consensus that AI demand will keep lifting chipmakers and other tech leaders.
It's worth noting that neither source confirms Burry is right; a single investor's bet is a warning flag, not a verdict, and even successful short sellers can be early or wrong. The Motley Fool's headline itself poses the open question of whether ordinary investors "should be worried."
Why it matters: If the AI chip trade is as overheated as Burry suggests, a reversal could ripple through the tech-heavy stocks that many retirement and index funds now depend on.