Michael Burry Shorts Caterpillar and AI-Related Stocks Amid Valuation Concerns

Huoxing Finance reports that on July 1, Michael Burry, the investor known for shorting the U.S. housing market and the real-life inspiration for "The Big Short," stated that he has taken a short position on Caterpillar, viewing the construction equipment manufacturer as one of the overvalued beneficiaries of the current AI investment frenzy. Burry revealed that he shorted Caterpillar shares at $1,060.98, alongside short positions in NVIDIA, Applied Materials, Tesla, and the iShares Semiconductor ETF (SOXX), preparing for what he sees as an increasingly overextended rally in AI-related stocks. In a SubStack article, Burry wrote: “Caterpillar caught my attention. I’ve never shorted Caterpillar before. In the past, it has consistently delivered strong returns for my long positions.” Caterpillar’s stock rose 86% in the first half of 2026, becoming one of the top-performing stocks in the S&P 500 this year. As investors increasingly treat it as a proxy for global AI infrastructure development, Caterpillar’s share price surged significantly. Burry noted that the stock’s valuation has reached a level that merits concern, sharing charts showing Caterpillar’s price-to-sales ratio has climbed to its highest level in at least 30 years, while its share price hit an all-time high. Burry also reiterated his concerns about semiconductor valuations, noting that the Philadelphia Semiconductor Index is currently about 65% above its 200-day moving average—a level previously seen only during the 2000 dot-com bubble. Burry said: “The immediate trigger for today’s rally is South Korea’s announcement of massive spending. Well, I think this is the beginning of the end. It’s just a matter of time.”