Another day to look at Micron (MU). I think I have covered this stock more than any other stock lately. One of the most recent best beats was the historic Q3 preview earnings coverage.
I call it best because our target was hit on the same day as that Q3 blowout print. Plus, it has been one of the most rewarding stocks to follow in 2026. And that is exactly why Michael Burry‘s latest move deserves some serious attention.
On Friday, July 24, Burry disclosed on his Substack “Cassandra Unchained” that he sold short more shares of Micron Technology (MU) at $933.86, adding to a bearish position he has been building across the semiconductor sector. MU closed July 24 at $920.95, down 6.99% on the session, according to Yahoo Finance.
Burry also added to his Nvidia short at $210.28, sold more Caterpillar at $893.49, added to his SOXX position at $535.83, and maintained shorts in Tesla and Palantir. It looks like the pattern is consistent because he is not making isolated stock calls. He is actually making a sector call.
Also Read: Micron Technology Inc. Latest News and Stories
What Michael Burry is actually arguing: the circular demand thesis
Burry’s bear case on semiconductors, including Micron, goes beyond valuation. It is a structural argument about the nature of current Artificial Intelligence (AI) demand.
He stated in his Substack post that he believes much of the current and future demand is not being driven by end customers. Instead, Burry argued, demand is “financed off-balance sheet and not disclosed,” with future revenues “majority financed in a circular arrangement,” citing the 2026 Bank for International Settlements annual report as supporting evidence.
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I think the “circular arrangement” argument is significant and worth understanding. If hyperscalers are committing to massive infrastructure spending, and those commitments are generating the AI revenue expectations that justify further infrastructure spending, the loop is self-reinforcing until it is not.
Burry is betting that the end-customer demand necessary to sustain the cycle will not materialize at the scale the market is pricing in.
He also said he continues to hold Nvidia puts “in good size,” and described the SOXX position, together with those puts, as a “large position.”
This doesn’t look like a hedging exercise. Instead, It’s more of a directional, high-conviction bet against the semiconductor complex.
The remarkable Micron’s fundamental story Michael Burry is betting against
My honest read of this situation requires acknowledging both sides.
Micron’s Q3 fiscal 2026 results, reported June 24, were the most extraordinary in the company’s history.
- Revenue of $41.46 billion compared to $9.30 billion in the same period last year
- GAAP net income of $28.24 billion, or $24.67 per diluted share
- Operating cash flow of $25.39 billion versus $11.90 billion for the prior quarter and $4.61 billion for the same period last year
- Ended Q3 with $30.2 billion in cash, marketable investments, and restricted cash
For Q4 fiscal 2026, Micron guided $50 billion in revenue, 86% gross margins, and non-GAAP EPS of $31.00. HBM4 is in high-volume shipments for the lead customer platform.
HBM4E development is underway with volume production targeted for 2027. Multiple strategic customer agreements are in place.
Related: Nvidia, Micron just got hit by an AI model from Beijing
Micron still ranks third best performer among all S&P 500 components year-to-date, up 222%, according to Slickcharts, behind only SanDisk and Dell.
Burry is not arguing the Q3 results were fake. Instead, he believes the cycle that produced them may be nearing its end. I find his circular demand argument intellectually serious, even if I am not yet convinced it will resolve on the timeline he is implying.
David Paul Morris/Bloomberg via Getty Images
Micron’s technical picture and where the chart is pointing right now
I called the technical bottom correctly before Q3 earnings, identifying the double support zone near $1,020 and $980 as the entry (Level marked by a red circle) in my technical coverage.
Price respected that level and ran to hit our anticipated target and all-time highs on the same earnings day.
Since then, the picture has deteriorated meaningfully. The ascending trendline that served as our previous entry level was broken, retested, and rejected.
Price has also pushed back below the $1,020 and $980 support zone, which has now flipped to resistance. Moving averages are also slowly turning strongly bearish.
After that rejection, the stock has been moving lower. Burry appears to have entered his additional short position around that resistance rejection zone.
Trading view
The current trading area sits near an important test. The $810 to $860 zone represents a meaningful and strong technical support, visible across multiple timeframes, and acted as support in previous times.
Burry hasn’t mentioned it yet, but if you ask me, I’d say that should be the first target for Burry’s short and the first potential stabilization zone for bulls looking to re-enter.
If $800 breaks below on a daily close with follow-through selling, the next meaningful support sits toward $700. A drop to $700 would represent a 44% decline from the all-time highs reached on earnings day.
Whether Burry’s fundamental thesis or Micron’s extraordinary earnings trajectory ultimately controls the price over the next several months is the central question we don’t have an answer to yet.
What I can tell you is that the technical setup, right now, supports caution rather than aggression on the long side until one of those support levels holds cleanly. I’ll be happy to review Micron again when I get a meaningful call.
Related: Bank of America doubles down on Micron stock after AI bombshell
