Burry Targets Micron As Chip Valuations Hit P/E of 74.3
MU•Michael Burry has opened a short position on the iShares Semiconductor ETF targeting major chipmakers including Micron as valuations soar to a P/E of 74.3, more than double the Nasdaq-100 tech index. Simultaneously, semiconductor stocks have slipped into a bear market as cooling AI infrastructure spending pressures memory demand.
1. Burry's Semiconductor Short Position
Michael Burry reopened a short position via the iShares Semiconductor ETF targeting Nvidia, Micron and AMD, citing excessive valuations with a sector P/E of 74.3, more than double the Nasdaq-100 tech index.
2. Chip Sector Enters Bear Market
The broad semiconductor index has slipped into a bear market as memory chip stocks led by Micron, Samsung and SK Hynix fell over 20% from recent highs following soft order trends.
3. Cooling AI Infrastructure Spending
Reduced spending on AI infrastructure by enterprise customers has weakened memory chip demand growth, creating revenue pressures for Micron and its peers in the coming quarters.
