Michael Burry Shorts Caterpillar at $1,060.98 as AI Rally Lifts Stock 86%
Updated
Updated · CNBC · Jun 30
Michael Burry Shorts Caterpillar at $1,060.98 as AI Rally Lifts Stock 86%
2 articles · Updated · CNBC · Jun 30
Summary
Burry said Tuesday he shorted Caterpillar at $1,060.98 and opened new bearish positions in Nvidia, Applied Materials, Tesla and the iShares Semiconductor ETF.
Caterpillar drove the call because its valuation looked extreme: Burry said its price-to-sales ratio has climbed to the highest level in at least 30 years as the stock hit record highs.
An 86% first-half gain turned Caterpillar into one of the S&P 500's best performers, with investors increasingly treating the equipment maker as a proxy for the global AI infrastructure buildout.
Burry also renewed his warning on chip stocks, saying the Philadelphia Semiconductor Index is about 65% above its 200-day moving average — a stretch he said was previously seen only in the 2000 dot-com bubble.
He argued that heavy spending announcements from Korea are fueling the latest leg of the rally, but called that surge "the beginning of the end" for overheated AI-linked shares.
Is the AI boom a revolutionary shift justifying record valuations, or just history repeating the dot-com bubble?
Could a massive AI short squeeze turn Michael Burry's 'Big Short' into his biggest miscalculation?
Will Caterpillar's AI pivot sustain its rally, or is it the first domino in Burry's predicted crash?
Michael Burry Shorts Caterpillar Amid 86% AI Boom—Warning of a 2026 Tech Bubble Repeat
Overview
Michael Burry, famous for his market predictions, has taken a new short position against Caterpillar as of June 30, 2026. This is a major shift, since Burry had always been successful with Caterpillar on the long side and had never shorted it before. His decision signals a strong conviction and marks a clear pivot from his previous positive outlook. Burry’s move comes as Caterpillar is transforming its business, increasingly connecting with the AI infrastructure boom. This background highlights how Burry’s bearish stance reflects both his changed view on Caterpillar and his broader concerns about the current market environment.