Michael Burry Thinks the AI Bubble Will Burst Sooner Than Later, Including Big Drops in Micron and Nebius by Mid-2027

Michael Burry, the investor who called the 2008 housing crisis, has repositioned into put options on MU and NBIS expiring in June 2027, betting on declines exceeding 50% in both names.

The structure matters. Puts with a June 2027 expiration give Burry roughly a year-plus window for his thesis to play out, and a 50%-plus drop target signals conviction rather than a short-term hedge.

His argument centers on a mismatch: AI revenue may not be large enough to justify the industry's capital expenditures. If spending slows, he expects memory chip makers and data center operators to feel it first. MU represents the memory exposure in that framing; NBIS represents the data center operator side. The selection of these two names appears to reflect where he sees spending-cut risk concentrated, though that mapping is our interpretation of his stated logic.

Burry has said the AI bubble will burst "sooner than later," an explicit timing call that pairs with the mid-2027 option expiry. Traders should note that a 50% drop requirement sets a high bar for the puts to pay off, and that options positions disclose a bet, not a forecast with a guaranteed outcome.

The trade is a clear, named, high-profile bearish position on two AI-linked stocks, which can influence sentiment around both tickers regardless of fundamentals.