This article first appeared on GuruFocus.

Memory-chip maker Micron Technology Inc. (MU, Financials) fell in premarket trading as investors assessed a new pessimistic forecast from Michael Burry (Trades, Portfolio) and increasing competition from Chinese memory suppliers.Burry said he boosted to his Micron short around $924 and also added to his bets on the larger semiconductor sector.That's good timing given Micron's been benefitting from a fast run-up in memory pricing, but the increased Chinese supply may eventually put a brake on that trend.CXMT has become the fourth-largest DRAM maker in the world, and YMTC is said to have taken over 14% of worldwide NAND sales in the second quarter, just ahead of Micron's 13%.This doesn't mean Micron's current price power is fading. But it adds another danger to a stock that's already run up on forecasts of constrained memory supply and strong AI demand.Burry's bigger fear is that AI hardware valuations are pricing in demand that's tougher to sustain. The concern for investors is whether the Micron memory boom can persist long enough to offset rising Chinese competition and a more cautious view on AI infrastructure.