Michael Burry, known for predicting the 2007-2009 housing crash, has expressed concerns about the memory chip sector, suggesting that the current structural shortage is not sustainable. He believes that production will soon catch up, leading to a down cycle in memory chip prices over the next two years.
Burry is increasing his short positions on companies like Micron Technology and Palantir, as well as the SOXX iShares semiconductor ETF. His stance is supported by comments from Acer's CEO, who noted rising Chinese production capacity, indicating that the shortage may not persist.
Additionally, U.S. economists have warned of potential overcapacity in the memory market due to increased Chinese output, which could lead to trade friction and a dependence on Chinese suppliers.
Burry also highlighted that the Nasdaq-100 index, which recently reached an all-time high, appears historically overvalued and top-heavy, although some analysts have noted a shift towards greater stock selection within the index.
In contrast, Burry is also taking long positions in companies he finds attractive, such as Build-A-Bear and Mercado Libre, indicating a mixed investment strategy amid his bearish outlook on memory chips