Burry shorts Caterpillar after it nearly doubled in AI rally of 2026
Michael Burry attends the New York screening of “The Big Short” at the Ziegfeld Theater on November 23, 2015 in New York City.
Astrid Stawiarz | Getty Images
Michael Burry said Tuesday he was betting on the downside. CaterpillarWe believe the construction equipment manufacturer has become one of the market’s most valued beneficiaries of the AI investment boom.
The famous investor said that he took Caterpillar shares into a short position at $ 1,060.98 and that new downward positions were found. Nvidia, Applied Materials, Tesla’s and the iShares Semiconductor ETF (SOXX) are preparing for what they believe is an increasingly broad rally in AI-related stocks.
“Caterpillar jumped me,” Burry wrote in Tuesday’s post. Substack post. “I’ve never shorted Caterpillar. He’s always done a great job for me on the long side in the past.”
Caterpillar shares finished the first half of 2026 with an 86% gain, making the construction equipment giant one of the best-performing stocks in the S&P 500 this year as investors increasingly embrace it as a beacon of global AI infrastructure construction.
Caterpillar year to date
Burry said Caterpillar’s stock valuation has reached levels that caught his attention. He shared a chart showing Caterpillar’s price-to-sales ratio climbing to its highest level in at least three decades, while its stock soared to record highs.
The investor famous for predicting and profiting from the 2008 subprime mortgage crisis also echoed broader concerns about semiconductor valuations. he said Philadelphia Semiconductor Index It is trading about 65% above the 200-day moving average; He said this level was only reached during the dot-com bubble in 2000.
“The immediate reason for today’s rise is the huge spending announced from Korea. I see this as the beginning of the end,” Burry said. “Now it’s just a matter of time.”
