Palantir surged 2% while Nebius fell 2% after Burry disclosed adding shorts to both, splitting the tape directly against his own thesis.
SOXX dropped 1% while QQQ fell 0.3% as Burry warns dangerous NASDAQ 100 concentration in AI names could trigger a broad semiconductor rotation.
Burry’s short case targets memory producers he calls ‘ridiculously’ priced, citing expanding Chinese supply undercutting expectations of sustained price increases.
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Shares of Palantir Technologies (NASDAQ:PLTR) are trading higher in Wednesday morning action even after investor Michael Burry disclosed adding to a short position against the company, along with new shorts in Nebius Group (NASDAQ:NBIS) and Micron Technology (NASDAQ:MU). The tape has split Burry’s list rather than confirming it evenly.
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The broader chip complex is softer. The iShares Semiconductor ETF (NASDAQ:SOXX), a fund Burry also named as a short, is down 1% this morning. The Invesco QQQ Trust (NASDAQ:QQQ) is down 0.3%, so the wider mega-cap tech tape is only modestly weaker.
Palantir stock is at $188.33, up 2% in Wednesday morning trading. Meanwhile, Nebius stock is at $231.84, down 2%. Micron stock is at $1,082.32, down 1% as traders parse the short call.
Burry’s Memory-Supply Case
Burry, the investor known for “The Big Short,” told Substack subscribers in a Tuesday post that he had added “in some size” to short positions in Micron, Nebius and Palantir, along with the iShares Semiconductor ETF. The size of the positions wasn’t disclosed, and no share count or dollar value has been attached to any of them.
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The stated case is a memory-supply case. He said memory producers had run up to “ridiculous prices for what they are and will sell down intensely on the other side.” The investor cited Acer chairman and chief executive Jason Chen, who said certain advanced memory products remain scarce while older-generation memory has more sellers than buyers, and who pointed to expanding, lower-priced Chinese production as a challenge to expectations of sustained price increases.
The Scion investor also warned that the NASDAQ 100 Index remains heavily concentrated, and said a broader increase in memory supply could create pressure across portions of the technology sector. He stated that he expects money to rotate out of semiconductor stocks, describing the memory shortage and artificial intelligence (AI) adoption narrative as sucking all the air out of the room.
Burry stopped short of calling a market top. He said new index highs make a short-term bearish view difficult despite narrow market breadth, and that too few historical tops exist for bull-trap patterns to work as a timing guide.
Palantir Is the Odd Name on the List
Palantir is the one name on Burry’s list moving against him this morning. The memory-supply argument he laid out doesn’t reach Palantir at all, which is what separates Palantir from Nebius and Micron on the same tape. That is a stock-specific split, not a sector-wide verdict on the AI infrastructure trade.
What Palantir does share with the memory names is the concentration point, since Burry’s warning about the NASDAQ 100 Index is about how much of the index sits in a small number of AI-levered names. Palantir carries a rich multiple heading into that debate, which is what makes Palantir a natural target for a valuation-driven short even without the memory thread.
The tape’s reading is narrower than the short call itself. If the memory-supply thesis were the dominant story today, Nebius and Micron would be leading the semis pullback while Palantir traded with them. However, the memory names are the ones lower while Palantir grinds higher, which points to something more selective than a broad rotation out of AI infrastructure. One session decides nothing about Palantir either way, and Burry himself declined to call a top.
What to Watch
Investors can watch for whether Palantir holds its bid into the close as the semiconductor tape leans lower. Traders may want to keep an eye on whether Nebius and Micron find a floor or extend their slide as Burry’s disclosure circulates through the session.
Nothing in the Substack post attached position sizes, so shareholders sizing their exposure to Palantir, Nebius or Micron should weight their risk to the concentration argument rather than to a single fund manager’s disclosure. The memory-cycle debate is genuinely open, and a heavy allocation to any single AI-infrastructure name deserves a smaller weighting in their portfolios than momentum alone might suggest.
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