Burry said shortages and pricing power are lifting AI infrastructure winners even as Micron, SK Hynix, SanDisk and Western Digital cite multi-year demand that could delay any supply glut.
Michael Burry warned that the supply shortages and pricing power driving today's AI infrastructure boom could eventually swing into overcapacity, leaving "future ghost towns" even as demand remains locked in across the supply chain. In an Aug. 5 post on X, he said Caterpillar is "doing unbelievably well," Palantir Technologies is "really filling acute CYA needs" and Nvidia's "margins & prices really cause nosebleeds," adding that "There's really gold in them thar hills." The caution comes as Micron said in June it had about $22 billion in customer commitments and roughly $18 billion in cash deposits tied to long-term contracts, SK Hynix President of Corporate Center Song Hyunjong pushed back last month against fears that heavy investment in AI memory production will lead to oversupply, SanDisk said its largest AI customers expanded multi-year agreements within a quarter, and Western Digital said it is negotiating storage deals that run through 2031. Counterpoint Research Director MS Hwang said expansion by Samsung Electronics, SK Hynix and Micron is unlikely to materially ease memory supply before 2028 if AI spending stays strong. Burry has also reiterated a bearish market view, with short positions against Nvidia, Micron, Caterpillar, Palantir, Tesla and the iShares Semiconductor ETF. Nvidia closed up 3.43% at $219.22 on Wednesday and rose another 3.30% in early Thursday premarket trading.