$MUB The most dangerous bubble isnโt on any valuation spreadsheetโitโs in human hearts.
When retail investors begin to believe a cyclical stock has achieved immortality, the ground for reverse trades is laid.
Burry has just shorted Micron, Nvidia, Applied Materials, and the semiconductor ETF SOXX.
He isnโt targeting AI itselfโheโs targeting the fact that humans, once again, mistake cycles for faith.
Micron is up 248% this year.
The stock priceโs deviation from the 200-day moving average has already exceeded anything seen since 1984โit's not even as absurd as the peak of the dot-com bubble.
But over its 42 years, this company has gone through 34 drawdowns of more than 30%.
The median ROIC is only 4%.
Free cash flow has been negative close to half the time.
This isnโt a โmiracle turnaroundโ stock that suddenly reinvented itself.
Itโs a strong cyclical asset reignited by an AI narrative.
Micronโs real problem is that it canโt control its own fate.
Samsung and SK Hynix are expanding productionโonce supply ramps up, profit margins will be dragged back to earth.
That has happened 34 times in the past 42 years.
Now retail investors are extremely bullish on Micron, with the 90-day news volume surging by 260%.
And the semiconductor index is also sitting high: SOXX is 65% above its 200-day moving averageโhistorically, that has happened only once.
In that instance, the internet bubble later burst.
Burryโs short isnโt betting on technological regression.
Heโs betting on human nature repeating itself.
In every bubble, people come to believe this time is different.
And each time the cycle returns, the market tells them:
Whatโs โdifferentโ is only the story.
The ending may still be the same old ledgerโwhat do you think?
Iโll closely monitor and update the latest investment-frontier news!
#NVDA #MU_Traders #ๅธๅๅทด่ฒ็น