Michael Burry Bets Against the Memory Boom: These ETFs Could Be Exposed if He’s Right
Michael Burry is betting against the memory boom as Chinese supply rises. Here’s why some semiconductor ETFs could face risks if his thesis plays out.
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Michael Burry's latest shorts on Nvidia, Caterpillar, Tesla, and Applied Materials put AI, semiconductor, and industrial ETFs under the microscope.
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Michael Burry is betting against the memory boom as Chinese supply rises. Here’s why some semiconductor ETFs could face risks if his thesis plays out.
Lam Research targets mid-40% operating margins over the next several years, up from current 38.4%. Q1'27 guidance shows continued margin expansion with expected revenues of $8.1B and 39.5% non-GAAP operating margin. AI demand, advanced packaging, and higher-margin services are expected to support growth, though the goal requires sustained execution and disciplined cost management amid planned $3B R&D investments.
Caterpillar delivered one of its strongest quarters, with Q2 2026 revenue up 24% to $20.5 billion and a record $72 billion backlog driven by AI infrastructure demand. The company's EPS reached $7.77, and analysts project significant upside with an average price target of $975 versus the current $803 price. However, the trailing P/E ratio above 35 reflects elevated valuation, though justified by multiyear demand visibility and reduced cyclicality.
Three sectors are higher and eight are lower in Thursday’s regular session, with growth, cyclical and defensive sectors each represented among the top three. The leaders are separated rather than
U.S. stock markets declined for a second consecutive day as Treasury yields reached multidecade highs and geopolitical tensions drove oil prices up. The Nasdaq fell 0.8%, the Dow 0.6%, and the S&P 500 0.5%. Oracle's data center project faced delays due to power supply issues, while Meta gained on AI optimism. The U.S. and China extended their trade truce by only two months instead of the three years China sought.