Michael Burry Makes Bold Long-Term Bet on Microsoft (MSFT) Stock with 2028 Options

Key Takeaways

• Michael Burry acquired December 2028 long-dated call options on Microsoft (MSFT) with strike prices around $700
• MSFT hit a 52-week bottom at $349.20 on June 25, declining more than 23% in 2026
• Burry characterized the $350 price point as “a good place to buy,” attributing the decline to “technical pressure, not fundamental” issues
• Microsoft shares jumped 5.2% on June 26 after Burry’s holdings became public, while money shifted from semiconductor names to software equities
• Analysts maintain a strong buy rating on MSFT with a mean price target of $562.10, approximately 51% upside from current prices

Michael Burry, renowned for his profitable bet against subprime mortgages ahead of the 2008 financial crisis, has taken a significant long-term bullish position on Microsoft (MSFT).

Microsoft Corporation, MSFT

Burry revealed on June 25 that he had purchased December 2028 LEAP call options on the technology giant, selecting a strike price in the low $700 range. That same trading session, Microsoft hit its lowest point in 52 weeks at $349.20, following a previous close of $365.46.

For this options strategy to generate profits, Microsoft would need to essentially double from that bottom and substantially exceed its historical closing high of $538.66 — all before the options expire in December 2028.

This isn’t a short-term momentum play. It represents a two-and-a-half year conviction bet that Microsoft will reach unprecedented price levels.

Burry’s rationale was straightforward. He stated that “the $350 level for Microsoft is a good place to buy,” noting that the longer-term options appeared attractively priced given his market view, according to TipRanks. He characterized the broader technology sector weakness as “technical pressure, not fundamental” — indicating forced liquidation rather than deteriorating business conditions.

This wasn’t Burry’s first Microsoft position. He had already established a long stake in April when shares were similarly pressured. The June transaction significantly expands that commitment through a much more substantial options framework.

The Reasons Behind Microsoft’s Decline

Microsoft has shed over $1 trillion in market capitalization since reaching its October 2025 peak, tumbling from a record closing price of $538.66 to approximately $365. Year-to-date, the stock has fallen roughly 23%.

The decline stems primarily from its aggressive capital expenditure plans. Microsoft projects spending approximately $190 billion on capital investments this fiscal year, with substantial allocations directed toward AI infrastructure and the specialized memory chips required to operate them. A worldwide shortage of memory components has escalated these hardware expenses.

Investors retreated after evaluating the scale of these expenditures. The sell-off also reflected a broader exodus from premium-valued AI-related equities throughout a turbulent 2026 market environment.

Microsoft Rallies Following Burry’s Disclosure

Microsoft stock opened 4.09% higher on June 26, immediately following the public disclosure of Burry’s position. The shares closed the day up 5.2%, even as the S&P 500 remained essentially flat and the Nasdaq Composite dropped 0.7%.

The upward movement coincided with apparent portfolio rotation from semiconductor stocks into software companies. No Microsoft-specific announcements drove the rally that day.

Burry executed several additional portfolio adjustments on June 25. He closed half his Palantir (PLTR) short position at $107.15, increased holdings in JD.com (JD) and Adobe (ADBE), and exited his Alibaba (BABA) position citing tax considerations, according to Stocktwits.

His 2026 performance shows varied results. His Palantir short has been profitable, with PLTR declining over 33% year-to-date. His Nvidia (NVDA) short position has fluctuated without decisive gains or losses. His Lululemon (LULU) long position is underwater by approximately 45%, per Finbold.

Regarding the Microsoft options trade, Wall Street analysts largely share the optimistic outlook. The stock maintains a strong buy consensus rating with a mean analyst price target of $562.10, according to TipRanks. Stifel analyst Brad Reback represents a contrarian voice with a hold rating and $400 price target.