Key Points
- Burry acquired December 2028 LEAP call options on Microsoft (MSFT) with strike prices around $700
- The stock hit a 52-week low of $349.20 on June 25, falling more than 23% year-to-date
- Burry identified the $350 price point as “a good place to buy,” attributing the decline to “technical pressure, not fundamental” issues
- Microsoft shares surged 5.2% on June 26 after Burry’s position became public, amid sector rotation from semiconductor stocks to software
- Analysts maintain a strong buy rating on MSFT with a consensus target of $562.10, approximately 51% upside from current levels
Michael Burry, the renowned investor who profited from the 2008 financial crisis, has established a significant long-term bullish position on Microsoft (MSFT).
Burry revealed on June 25 that he had purchased December 2028 LEAP call options on the tech giant, targeting strike prices in the low $700 range. On that same day, Microsoft hit its 52-week low at $349.20, having closed at $365.46 the previous session.
For this options strategy to generate profits, Microsoft would need to approximately double from those levels and substantially exceed its all-time closing high of $538.66 — all within the timeframe ending December 2028.
This represents far more than a short-term rebound play. It’s a strategic, multi-year position betting that Microsoft achieves unprecedented price levels.
Burry’s rationale was straightforward. According to TipRanks, he stated that “the $350 level for Microsoft is a good place to buy,” viewing the extended-duration options as attractively priced given his expectations. He characterized the broader software sector selloff as driven by “technical pressure, not fundamental” factors — representing forced liquidation rather than deteriorating business fundamentals.
This wasn’t Burry’s first Microsoft entry. He had already initiated a long position in April during a previous period of downward pressure. The June transaction significantly amplifies that bet through a more substantial options framework.
The Reasons Behind Microsoft’s Decline
Microsoft has shed over $1 trillion in market capitalization since peaking in October 2025, tumbling from its record close of $538.66 to approximately $365. Year-to-date, the stock has declined roughly 23%.
The decline stems primarily from the company’s capital expenditure outlook. Microsoft projects spending approximately $190 billion on capital investments during the current fiscal year, with substantial allocations directed toward AI infrastructure and the high-bandwidth memory chips required to power these systems. A worldwide shortage in memory components has elevated hardware acquisition costs.
Investors reassessed their positions after analyzing these expenditure projections. The pullback also reflected a broader market rotation away from premium-valued AI-related equities throughout a turbulent 2026 market environment.
Microsoft Rallies Following Burry’s Disclosure
Microsoft shares opened 4.09% higher on June 26, the trading day after Burry’s position came to light. The stock concluded the session with a 5.2% gain, even as the S&P 500 remained essentially unchanged and the Nasdaq declined 0.7%.
The upward movement coincided with apparent capital flows shifting away from AI semiconductor stocks toward software companies. No Microsoft-specific announcements drove the rally that day.
Burry executed several additional portfolio adjustments on June 25. He closed half of his Palantir (PLTR) short position at $107.15, increased holdings in JD.com (JD) and Adobe (ADBE), and liquidated his Alibaba (BABA) position citing tax considerations, according to Stocktwits.
His 2026 performance presents a mixed picture. The Palantir short has delivered results, with PLTR declining over 33% this year. His Nvidia (NVDA) short has produced inconclusive results with fluctuating performance. His long position in Lululemon (LULU) has dropped approximately 45%, per Finbold.
Regarding the Microsoft call option position specifically, Wall Street analysts generally share the optimistic outlook. The stock maintains a strong buy consensus rating with an average price target of $562.10, according to TipRanks. Stifel analyst Brad Reback stands as a notable exception with a hold rating and $400 price target.
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