Michael Burry’s Memory Stocks Thesis Gets Fresh Support From Acer CEO’s Supply Warning
Yahoo Finance ·
Burry stated that memory manufacturers have shifted capacity toward high-bandwidth memory for AI, creating tighter supplies of conventional memory in the process.He cited the return of conventional memory production as a potential pressure point for prices.Burry’s comments come after he built a broader semiconductor short, including positions in Nvidia, Applied Materials, SOXX, and Micron.Michael Burry’s bearish memory-stock thesis gained another data point on Tuesday after Acer CEO Jason Chen warned that rising Chinese production could eventually ease supply constraints and pressure prices.In a Substack note, Burry cited Chen’s interview, in which he said memory inventories are building, and that mainland Chinese suppliers are releasing more volume into the market, challenging forecasts that the current shortage could persist for years. According to Burry, the shortage in conventional memory was created in part by manufacturers shifting production toward high-bandwidth memory (HBM) for artificial intelligence applications. Now, “normal RAM” production is ramping back up, he said.‘The Big Short’ investor has been building a broader bet against the semiconductor cycle, with Micron Technology (MU) emerging as his most direct memory-stock short. MU stock gained over 2% in midday trade on Tuesday. On Stocktwits, retail sentiment around the firm rose to ‘bullish’ from ‘neutral’ territory over the past day.MU stock retail sentiment on September 22 as of 12:00 p.m. ET | Source: StocktwitsBurry Is Betting Against The Memory CycleBurry’s interest in the memory market predates Acer’s latest comments. His bearish view on the AI boom was already taking shape by late 2025, when Scion Asset Management’s third-quarter filing disclosed large put positions in Nvidia (NVDA) and Palantir (PLTR). The firm has since shut down.By late June 2026, Burry had expanded that view into a broader semiconductor trade. He shorted Nvidia, Applied Materials (AMAT) and the iShares Semiconductor ETF (SOXX), while also extending his SOXX puts into March 2027.Two days later, he added Micron Technology to the trade, shorting the memory-chip maker outright at around $1,051. At the time, Burry said he preferred the outright short because Micron’s put options were too expensive.Acer Challenges Long-Term Memory Shortage OutlookIn his interview, Chen said memory inventories are already building and that Chinese manufacturers are increasing supply. He expects the additional capacity to eventually put pressure on prices, with the impact becoming more visible from late 2027.Chinese memory makers, including ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC), are expanding production, adding another source of supply to a market constrained by the AI boom.The current memory cycle differs from previous ones because AI data centers are consuming large amounts of HBM. Samsung, SK Hynix and Micron (MU) have redirected capacity toward HBM to meet that demand.For Burry, however, the broader question is whether the semiconductor industry's capacity expansion eventually catches up with demand.Read also: Trump UN Speech: US President Signals Potential Iran Deal After Midterms, But Also Urges Nations For Tehran’s Complete Economic IsolationFor updates and corrections, email newsroom[at]stocktwits[dot]com
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