Michael Burry is betting against Micron (MU), even though the stock trades at 5.4 times this year's expected earnings and about 4.6 times one-year forward earnings, versus a forward P/E of around 19 for the S&P 500. In the fiscal fourth quarter ended Sept. 3, Micron posted non-GAAP EPS of $33.42, above the $31.61 analyst estimate, with adjusted EPS up 1,003% year over year and sales up 379% to $54.2 billion. Burry argues that the current memory shortage, driven by demand for HBM chips, could reverse in line with the sector's historical cyclicality. He has also raised risks from circular financing deals across the AI industry and the rise of Chinese memory-chip makers that could weaken Micron's pricing power.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/14/2026 | 221.30 |
| Change that session | -3.16% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Jensen Huang Declares NVIDIA Can Win “in the Absence of Any AI Labs”
NVIDIA CEO Jensen Huang said on the BG2 podcast that about a third of the business, classical computing unrelated to AI labs, is growing 30% to 40% a year, while frontier labs account for roughly 25% to 30% of compute. In the three months to July 26, 2026, revenue rose 106% to $96.2 billion, with AI clouds, industrial and enterprise revenue up 138%. Steve Eisman cited a 10-Q line showing 70% of NVIDIA's accounts receivable comes from five customers, though the article notes receivables are not the same as revenue share. NVIDIA trades at 17.7x forward earnings, near its three-year low of 17.5x and well below its 30.3x average.
- Nvidia Stock Could Be Headed for a Significant Revaluation
The article argues NVIDIA could reach $400 in 2027, a gain of about 79% from $223.55. Second-quarter fiscal 2027 revenue reached $96.22 billion, up 105.8%, with Data Center sales rising 117% to $89.02 billion. The average analyst target of $328.72 implies about 47% upside, and fiscal 2028 EPS estimates have been revised upward. At $400, shares would trade near 25x forward earnings, versus about 14x today and 21 to 23x for the S&P 500. Key drivers include Vera Rubin orders and top-five hyperscaler capex rising from nearly $800 billion in 2026 to $1.3 trillion in 2027, while risks include memory costs that could push gross margin to 71% to 72%.
- AI stocks lead rebound on Wall Street as European markets drop
AI stocks recovered part of last week's steep losses on Wall Street on Monday, with the S&P 500 up 0.9% after its worst week since June and the Nasdaq up 1.7% on technology strength. Most U.S. stocks outside AI and tech were falling, while the Dow gained a modest 0.2%, or 111 points, as of 11:30 a.m. Eastern. European indexes dropped more than 1%, with Paris down 1.5%, after violent weekend protests that could push governments to boost spending and pressure bond markets. The 10-year Treasury yield rose to 5.12% from 5.09%, while Brent crude fell 1.4% to $108.35 a barrel. Cleveland-Cliffs jumped 15.1% after reporting a bigger-than-expected quarterly profit.
- Stock Market Today: Dow Up, Nasdaq Rallies; Sandisk Surges As This Biotech Play Tests Entry (Live Coverage)
- AI stocks lead a rebound on Wall Street as European markets drop following protests
AI stocks rebounded on Wall Street on Monday after last week's steep losses, with the S&P 500 up 0.9% and the Nasdaq up 1.7%, while the Dow rose only 0.2% and most stocks outside AI and tech fell. European indexes dropped more than 1% after violent weekend protests, with Paris down 1.5%, and European bond yields rose on worries that governments would need to spend more, particularly in France. The 10-year Treasury yield climbed to 5.12%, near its highest level since 2002, while Brent crude fell 1.4% to $108.35 per barrel. CoreWeave rose 2.9% after tumbling 25.2% last week, Nvidia added 2.1%, and Cleveland-Cliffs jumped 15.1% after reporting a bigger-than-expected quarterly profit. Analysts expect S&P 500 profit growth of 29% from the prior summer, and Meta Platforms and Lam Research will report results on Wednesday.
- Michael Burry Is Bearish on Palantir, Which Is Up 19% Over the Past Year, but His Oracle Short Just Got a Boost From a 53% Stock Drop. Is His AI Bubble Bet Still Worth Following?
Michael Burry, who made his fortune betting against the U.S. housing market before the 2008 crisis, remains bearish on AI overinvestment even after disbanding Scion Capital. He holds put options on Nvidia, Palantir and Oracle, but so far only the Oracle bet has paid off, while Nvidia and Palantir have not fallen as he expected. Burry argues the market is in denial and propped up by borrowed money, and says this denial phase lasted six to nine months before previous crashes. He has also criticized Nvidia’s chip depreciation math, while buying MercadoLibre and Deckers Outdoor. The author concludes that AI investors should still follow this bear case to maintain an objective view.
Related markets
Latest news
- JPMorgan Backs Two Defense Startups With $5 Billion
JPMorgan has already committed half of its $10 billion investment pool to hypersonic-missile maker Castelion and defense manufacturer Hadrian. The bet reflects America's push to rebuild its defense industrial base.
- X-Energy, Amazon, AEP Partner To Evaluate Feasibility Of 960 MW Nuclear Project In Indiana – A Look At The Key Highlights
X-energy and American Electric Power (AEP) announced a joint development agreement to evaluate the feasibility of a proposed 960-megawatt small modular reactor project in Indiana, with Amazon supporting development through a milestone-based funding agreement. The plant would feature 12 Xe-100 units near the former Breed Generating Station in Sullivan County, redeveloping an AEP-owned brownfield site. It is the second commercial project under the X-energy and Amazon collaboration, which aims to bring more than 5 gigawatts of new nuclear capacity to the U.S. grid by 2039. At the time of writing, XE was up 2%, AMZN gained 3.75%, and AEP fell 1.13%.
- Waymo Will Be “a Trillion Dollar Business. Easy” per VC Investor
Bessemer Venture Partners' Sameer Dholakia says Waymo could become a trillion-dollar business by expanding from ride-hailing into personal car ownership, trucking and logistics. The article notes Bessemer invested in Waymo's $16 billion February round, which valued the company at $126 billion. Waymo reached 500,000 paid rides a week in March, but Sacra estimates its annualized revenue at only $355 million in February, under 0.1% of Alphabet's $403 billion in 2025 revenue. Alphabet trades at 25.0x forward earnings, within its usual range, while Uber trades at 18.2x, a level analyst Walter Piecyk links to the threat from Waymo and Tesla's Robotaxi.
- AWS Margin Expansion and Retail Execution Power Amazon (AMZN) in Q3
Wedgewood Partners reported that its Wedgewood Composite returned 2.5% net in the third quarter of 2026, compared with 2.3% for the S&P 500 and 0.9% for the Russell 1000 Growth. In its investor letter, the firm named Amazon a leading contributor, citing AWS revenue growth accelerating to 37% from 17% a year earlier and a 63% rise in the segment's operating income. AWS backlog of around $500 billion is more than double last year's level and up 37% from 90 days earlier, and Wedgewood said this demand supports a plan to double AWS capacity from circa 2025 levels by 2027. Advertising grew 26% and generated over $75 billion in revenue over the past 12 months. As of October 16, 2026, Amazon closed at $250.00, with a market capitalization of $2.7 trillion and a 21.22% gain over the past year.
- Bitcoin is rejected at $83K as US bond yields reverse higher with equities
Bitcoin failed to follow rising equities as a wall of sell orders above $83,000 across exchanges capped gains, and BTC slipped below $82,000 after Monday's Wall Street open. The Nasdaq Composite gained 1.5% and South Korea's KOSPI rose 1.76% to 5,768 points, while the US 10-year yield climbed to 5.13% and the 30-year to 5.46%, moving in step with stocks ahead of major tech earnings from Meta, SpaceX and Tesla. QCP Capital warned that a repeat of last week's tech sell-off could threaten the $80,000 support level. Crypto liquidations totaled $335 million over 24 hours, and the Binance whale ratio fell to 0.45 from 0.54 at the start of October.
- Bitcoin Tests Key Support as Oil and AI Fears Squeeze Markets
Bitcoin traded near $82,164 after touching $83,040 earlier in the day, sitting just above a key support line. Brent crude hovered near $108 a barrel after attacks on Persian Gulf tankers and Russian crude facilities, while September CPI rose 3.7% and PPI jumped 6.3%, raising expectations of a Federal Reserve rate hike. The 10-year Treasury yield stood at 5.08%, and spot Bitcoin ETFs lost about $910 million over two weeks. The Nasdaq Composite fell more than 2% on Friday for its worst week since June, with CoreWeave down about 24% over the week. Technically, RSI sits at 49.3 and ADX at 21.6, signaling no firm trend, and the article notes that a daily close below $81,603 could open the way to $81,196.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.